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18-34 Year Old Segmentation Study PRESENTATION – JUNE 2016

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18-34 Year Old Segmentation Study PRESENTATION – JUNE 2016 Minnesota Lottery 18-34 Year Old Segmentation Study PRESENTATION – JUNE 2016 © 2016 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos. © 2016 Ipsos 1 What is Happening in Minnesota? What are the Challenges? Agenda What are the Segments? How and Where Do We Reach Them? Discuss the Findings © 2016 Ipsos 2 What is Happening in Minnesota? Population Spend 2015 in past 12 months $546,900,000 9% 45% 2002 2015 2002 5,019,000 5,489,600 $377,000,000 Penetration % played any lottery game in past 12 months 51% 14% 43% 2002 2015 © 2016 Ipsos 3 Challenge #1: Where Have All The Young People Gone? % change Players by Age (2002 vs. 2015) 22% 23% 2% 14% 66% 62% 62% 60% 61% 56% 47% 57% 56% 57% 51% 51% 51% 52% 50% 49%49% 5% 47% 45% 45% 43% 44% 41% 39% 7% 37% 37% 30% 28% 27% 26% 24% n/a n/a Total 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74* 75+ 1.2 Million 2002 2005 2010 2015 People Source: Minnesota Lottery SCSU Survey © 2016 Ipsos 4 Challenge #2: Do Differences Exist? What are their attitudes towards life? . Are their regional differences? How do they consume news and information? How they view technology and its role in their life? Where and how do they shop? What are they doing for entertainment? © 2016 Ipsos 5 Challenge #3: Can you Spot the Difference? Meet Darcen 1.0 Meet Darcen 2.0 In his 30’s In his 30’s Income - $1234 Income - $1234 Casual Player Casual Player Shops at Target Shops on Amazon Uses apps to find new restaurants Eats at McDonalds Goes to craft beer festivals Hangs out at the mall Is saving for retirement No thought for tomorrow Likes to call people Likes to Snap people You can’t be everything to everyone. You want to grow the pie among those where an opportunity presents itself But where? And how? © 2016 Ipsos 6 How Can An 18-34 Segmentation Help? Those aged 18-34 is a subset of the general population. • It consists of Minnesotans of the same age, however, it is otherwise heterogeneous. General Population 18-34 Year Olds Segmentation looks for similarities between people in this market and clusters them together into different groups based on these similarities. • The resulting segments are made up of people that are a lot alike internally. • While individuals in each segment are similar, individuals between 18-34 Year Old Segments segments are not. © 2016 Ipsos 7 Segmentation : How do we do it? Attitudes Towards….. NewsCareer/FinanceEntertainmentSocialTechnologyShopping & Information Media Tech-Dependent Homebodies Social Trend- Surfers Rational Planners Traditional Risk- Takers © 2016 Ipsos 8 Addressing the Challenges- The Road Traveled Phase 5: Presentation and Workshop - Workshopping new segments Phase 4: Consumer Behaviors Study - Understand behaviors of new segments Phase 3: Qualitative Review and Segment Naming - Qualitative Mini Groups: Deep Dive - Naming the Segments Phase 2: MN 18-34 Online Survey - Quantitative Survey - Segments identified Phase 1: Qualitative Exploration of 18-34 Attitudes in Minnesota - Mini Groups in Duluth, Minneapolis, Mankato © 2016 Ipsos 9 The world is becoming increasingly MOBILE IPSOS HAS DEPLOYED AN APPROACH FACTS ABOUT 18-34 YEAR OLDS IN MINNESOTA CALLED “DEVICE AGNOSTIC” • OPTIMIZED VIEWING EXPERIENCE OWN A • FRIENDLY NAVIGATION SMARTPHONE* • REPRESENTATIVE RECRUITING 89% • ANY DEVICE (TABLET, PHONE, DESKTOP) • ANY BROWSER OF THE TIME THE SMARTPHONE IS WITHIN ARMS REACH* 81% USE THEIR PHONE ACCESS THE INTERNET 10 EVERY SINGLE 77% DAY* *IPSOS© 2016 Ipsos – GAMING WITH MILLENIALS STUDY-2014 10 SO WHAT ARE THE CHALLENGES? 18-34 year olds in Minnesota 1 are playing the lottery less than they used to How do we understand the 2 nuance differences that exist within 18-34 year olds? How and where do we 3 reach 18-34 year olds in Minnesota? © 2016 Ipsos 11 THE SEGMENTS © 2016 Ipsos 12 Areas of Consensus - Agree A healthy It is It is work/life important for important in balance is life to have a I need a job important to me to be secure job that allows for continued me financially growth stable It is I feel It is important to I have long- optimistic important to think about term about my own a home what I want personal future at some point in life goals in your life © 2016 Ipsos 13 Areas of Consensus - Agree Entertainment helps me Sometimes it It is escape from is important important to It is my day to day to stay in on make time important to life the weekend for just budget some myself money for to relax “fun” Technology helps me It is I believe it is connect with important to important for Technology people I care have a me to develop makes my life about healthy my own world more lifestyle view convenient © 2016 Ipsos 14 Areas of Consensus - Disagree Celebrity I consider I never give endorsements I prefer to myself out my email influence stay close to morally address to what home when I opposed to companies products I buy travel gambling I enjoy I am more I prefer to I would spending likely to communicate rather have time in large purchase a with my lots of casual crowds more product if I see friends using friends than a than in small a celebrity I short videos few close groups like actually or pictures friends using it © 2016 Ipsos 15 SEGMENT SUMMARIES © 2016 Ipsos 16 Definitions of Segments Minnesota Lottery and Ipsos participated in a Segment Naming Workshop on June 2nd to understand the segments and come up with the segment names. 1 2 3 4 Rational Planners Tech-Dependent Social Trend- Traditional Risk- Homebodies Surfers Takers © 2016 Ipsos 17 SEGMENTATION SUMMARY Proportion of Lottery Game Participation & Spending by Segment % of 18-34 Year Olds % of PY Spending on Lotteries 11% 21% 27% Traditional Risk-Takers 10% Social Trend-Surfers 45% Tech-Dependent Homebodies Rational Planners 29% 22% 35% % of PY Lottery Players % Other gaming – Ever play 22% 26% 41% 59% 21% 37% 32% 48% © 2016 Ipsos 18 SEGMENTATION SUMMARY Rational Planners – Over Index It is important to me to take It is It is time to important for important to I like to read disconnect me to be have a reviews from financially healthy before technology lifestyle making a stable purchase Established Diligent Research-savvy It is important I enjoy planning I spend time for me to have what I’m going to Adventurous do next weekend thinking Conservative a job where I about my can contribute I enjoy planning retirement Rational to society for the future savings Base: Rational Planners (n=274) © 2016 Ipsos 19 SEGMENTATION SUMMARY Rational Planners – Under Index I use social media to find I am among deals or I enjoy the first to promotions (i.e. playing purchase a I actively avoid contests/ games on my new advertisements Sweepstakes) smart phone technology whenever or on social possible media A gambler Gambling can It’s fun to Gambling can be a be a nice fun way to spend distraction gamble even time with friends A lottery if I don’t win from my Gambling can be a player everyday fun part of an routine evening’s entertainment Base: Rational Planners (n=274) © 2016 Ipsos 20 SEGMENTATION Rational Planners Gender Age 40% 60% 27.0 Male Female Mean 30% 37% 33% Second Self Identification Traits 18-24 25-29 30-34 Education An animal lover 77% A leader 66% A homebody 57% 10% 21% 57% 12% Someone who Income Employment lives for the 43% moment 35K or Full-time 64% 14% A concert goer 33% less Part-time 11% Homemaker 5% 35K to A risk-taker 30% 75K 39% Self-employed 3% Retired 0% 75K to Student A lottery player 8% 150K 34% 13% Military 0% 150K or Unemployed A gambler but looking 4% 5% more 6% Unemployed and not looking 1% Base: Rational Planners (n=274) © 2016 Ipsos 21 SEGMENTATION Rational Planners I've purchased in I've purchased in the last 12 I've purchased, but not I've heard of this game, I've never heard the past month months, but not in the past month in the last 12 months but never purchased it of this game Any Game Participation 17% 34% 18% 30% <[VALUE] Any Game Purchase Frequency Lottery Play Past Year Other Gaming Participation (Top 3 Mentions) 1% 3% Almost every day 7% 12% 51% Every draw 17% 19% 16% 12% Paper Gambling at casinos Purchasing 29% Weekly Past Past Pulltabs in Minnesota or raffle tickets Month Year neighboring states Past Year Lottery Players Past Year/Month Spending Monthly (Any Game Mean excl. 0) Every couple of 49% months Less than every $65.50 couple of months $17.50 22% Any Game Past Month Past Year Spend Spend % of Past Base: Rational Planners (n=274) Year Spend © 2016 Ipsos 22 11% SEGMENTATION SUMMARY Tech-Dependent Homebodies – Over Index I use social Technology media to helps me follow brands connect with I would I find it easy to I like or to people I care rather do my hibernate find deals/ about and keep shopping promotions up with my online during winter friends Homebody When I wake up I am most likely to Netflix in the morning, Social media is get my news Introverted one of the first the primary through my phone things I do is way I Hibernators check my social communicate I primarily get my media accounts with friends news from social media, like Facebook Base: Tech-Dependent Homebodies (n=223) © 2016 Ipsos 23 SEGMENTATION SUMMARY My ideal Tech-Dependent Homebodies – Under Index vacation includes Exercising is a I like live activities like chance for music while I I love getting hiking, biking me to have am out with into nature or nature and away walks some alone my friends from time technology I like competing with friends or family for fun I would I prefer to go I enjoy a rather work
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