BOUT U
Strategic Planning ROI Modelling
Predictive Analytics Category Planning Market Share Tracking Brand Health Consumer Insights Media Mix Modelling Ad-copy Analytics
Welcome to
FUSION 1
FUSION ANALYTICS
We help companies make better, data-driven decisions — the kind of decisions that give you the confidence to implement not only daily improvements but the boldest of visions.
Our Background
best consultancy at analytical thinking in North America. It’s why
We’re motivated by so much more than financial success. We don’t dream about fat financial targets, being bought out, or going public. Instead, at Fusion we focus on one thing: being the our clients love working with us. 2
Who we are •
Canada’s leading experts at data integration to provide one-version-of-the-truth
•
Data agnostic (we sit on top of existing data)
Toronto, ON
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Who we are • Each problem is put into a formula • Each data source is triangulated (slide 5) • All data talks to each other (slide 6, 7) • Quantify the journey (slide 8, 9) • Find the best opportunity (slide 10) • Predict ROI (slide 11) • Dive deeper & tactically optimize (slides 12-13)
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Our clients
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UR TEA
We're a team of thinkers, strategizers, problem solvers, and board game lovers. When it comes to improving your business, we know how to put your data to work.
MEET OUR TEAM Proposed OLG Team 6
President & Chief Strategist
JOE THACKER Joe founded Fusion in late 2006 and now works as an advisor to Executives on designing, optimizing and measuring their businesses. He has assembled what his clients say is “the best analytical team in Canada”, and their “secret weapon” in today’s retail environment. He currently works with Canadian Tire, Walmart, Home Depot, Sport Chek, Mark’s, IKEA and many other retailers on measuring their businesses and isolating key drivers of sales. He has 20+ years of analytical experience and an MBA from Richard Ivey School of Business.
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Executive Partner & COO
Emily Ho Emily is the Executive Partner & Chief
Our People
Operating Officer at Fusion. Her expertise is in taking a variety of structured and unstructured datasets and building integrated, “one-version-of-the-truth” platforms to drive streamlined decision making. She holds an HBA from the Richard Ivey School of Business with a focus in Finance, and has been with Fusion for 9 years.
“There are no politics because we genuinely want each other to succeed. We work hard as a team, and nobody gets left behind.” - Ada Liu, Consultant
Senior Consultant
Project Leader
Darpan Kansal
Dr. Stephen Hausch
Darpan joined Fusion with an MBA in Business
Dr.
Strategy.
completing his PhD at the University of Calgary
His
expertise
lies
in
solving
Stephen 2015.
He
Hausch is
an
joined expert
Fusion
challenging strategic problems by understand-
in
ding prevailing market conditions, competitive
mathematical
landscapes and consumer expectations through
analysis. As a Project Leader at Fusion, Stephen
quantitative research. Darpan has devised
helps his clients uncover and understand the
segmentation and penetration strategies that
underlying factors that shape their businesses.
helped his clients increase product awareness
He has worked extensively on industry, real
and market share. Darpan’s skillset positions
estate, sales, and inventory modelling, and has
him uniquely at the at the cross-section of
developed the proprietary algorithms that
marketing and data analytics.
power some of Canada’s largest retailers.
modelling
at
after
and
advanced statistical
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8
A list of our fans (i.e. references)
Charles Brown
Stephen Wetmore
Ted Moroz
Peter Goldberg
CEO/ The Sources
CEO/ Canada Tire
President/ The Beer Store
President/ Bouclair
Lauren MacDonald
Dave Mazzone
Mike Rowe
. Heather Gerson
CMO/ IKEA Canada
CMO/ Staples Canada
CMO/ Home Depot
AVP/ Analytics Indigo
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OUR APPROAC
Only Fusion triangulates each data point in the formula…
OUR APPROACH 10
Future state:
Currently, there are a few main data sources used, where each has its own strengths and weaknesses
Fusion can help expand the data choices and depth, triangulating each to provide the executive team “one-version-of-the-truth”
Triangulate
Current state: Main data sources:
Player Participation study
Media Mix Modelling
Player participation study (penetration data)
Terminal transaction algorithm (internal report)
Media Mix modelling
Terminal transactions
Fusion’s models and studies
1 triangulated “truth”
StatCan & Other Sources
by normalizing all data to ensure comparability and incorporating more sources where possible to increase confidence, allowing…
1 Meeting & Discussion
1 Decision
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Fuse/ integrate
Only Fusion triangulates each data point in the formula‌ 12
Ad-copy
Brand
If ad-copy shows that advertising is driving stronger brand performance…
… then brand metrics show brand is improving …
Fuse/ integrate
…then we fuse it all together so everything talks to everything
By connecting various reports and metrics, Fusion provides an integrated view that isolates the impact of each performance change. If Ad-
Traffic (retail & online)
copy shows improvements
… which flows into improved traffic based on ability to drive traffic …
in advertising, then Fusion isolates how that
influenced brand and the final impact on sales, based on ability to convert brand strength into traffic
Player participation study
and traffic into sales.
Penetration/ transaction Terminal transaction algorithm
… higher traffic leads to higher penetration among consumers as shown in the player participation study …
Basket/ price
Sales … ultimately driving sales
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Fuse/ integrate
We make it come together By “fusing� together various data, we provide: 1. 2. 3. 4.
Clarity to the Executive team Confidence to make big decisions An integrated vaew of your business Triangulated numbers you can stand by
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Detail the journey
Gaming Revenue-Opportunity-Chain Illustrative example: Consumer’s thought process
Yes
Game A’s opportunity
Am I open to this game?
No
Aware
Positive
Access
Purchase
Great UX/ UI
Which games am I aware of?
Which games do I have positive brand affinity towards?
Which games available where I shop/ have access to?
Which games do I purchase?
Which games would I play again?
Not aware
Negative
No access
Don’t purchase
Won’t play again
Game A’s performance
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Quantity the journey
Uncover where the largest bottlenecks are & Track improvements over time
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(Illustrated data, across all of Canada)
*Opportunity is measured as the difference between Game A score vs. topperforming game at each step of the Revenue-Opportunity-Chain Share values triangulated with Lotto trends tracker, Statistics Canada’s Survey of Household Spending and Terminal transaction algorithm.
% captured by client
% opportunity*
2 Client’s largest opportunity for future growth lies in building brand awareness with Game A consumers
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31 3
34 100 0 All of Canada
Open to Gaming
Awareness
2
1
21
14
8.6
Positive affinity
Access
Market Share
86% Open ratio
39% Awarene ss ratio
63% Affinity ratio
65% Access ratio
62% Purchase ratio
8.6% Market share 17
Quantify the journey
Client’s Revenue-Opportunity-Chain in Game A:
Find the best Opportunity
Identify the highest growth opportunities 18
Games Millennial lottery’s largest opportunity lies in brand awareness. Shift resources accordingly.
Digital sports betting’s issue is further down stream, in increasing online visits and performance/ conversion.
Limit investment to games with ta small profit opportunity, as ROI will inherently be lower
Total opportunity in profit $M
Awareness opportunity in profit $M
Affinity opportunity in profit $M
Access opportunity in profit $M
Purchase opportunity in profit $M
Millennial lottery
358
137
90
96
35
Millennial betting
276
52
101
21
102
Sports betting
135
9
9
56
61
Online sports betting
119
23
32
24
40
Online lottery
115
58
28
14
15
Mobile lottery
103
12
28
13
50
Mobile betting
104
15
30
9
50
Game H
83
11
41
11
20
Game I
74
27
32
6
9
Game J
72
7
21
18
26
Game K
64
11
11
11
31
Game L
67
4
16
11
36
Game M
63
9
27
13
14
Game N
53
4
18
12
19
Game O
49
14
17
2
16
Game P
40
4
12
7
17
Game Q
33
6
9
3
15
Game R
24
5
5
5
9
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Find the best Opportunity
Illustrative example:
Predict ROI
Evaluate the expected share gain based on size of opportunity and current flow through
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(Illustrated data)
% captured
39%
26%
$2.1B Market size
$XM awareness opportunity
Current affinity ratio
Current access ratio
Current purchase ratio
X%
X%
X%
% opportunity
$XM flow through opportunity
+5% flow through share
5% 3%
Time horizon: Long-term awareness building Cost / investment: Campaign cost to acquire incremental awareness Residual impact: Permanent improvement in awareness with lagged decay
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Predict ROI
Flow through opportunity* for Online sports betting
* Current flow through opportunity measures the total profit opportunity for each segment of the ROC when all else held constant, it is calculated based on top-performing game at each step of the Revenue-Opportunity-Chain multiplied by current ROC performance funneled to market share (Flow through opportunity = % Opportunity x Market size x ROC flow through ratio), for example Online sport betting has 39% total Awareness opportunity in an industry with $2.1B market size, existing affinity ratio is XX%, access ratio is XX% and purchase ratio is XX%, this equate to a total of $XXM upside in Awareness. (Illustrative data)
Dive deeper
Align resources to each step on the journey/ path
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Yes
Game A’s opportunity
Am I open to this game?
No
Levers Most effective tools to capture opportunity
Consumer behavior
Aware
Positive
Access
Purchase
Which games am I aware of?
Which games do I have positive brand affinity towards?
Which games available where I shop/ have access to?
Which games do I purchase?
Not aware
Negative
No access
Don’t purchase
Marketing & branding Prize/reputation
Dive deeper
Consumer’s thought process
Game A’s performance
Distribution network & online access Prizes/pricing Gaming experience Labour/services
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Dive deeper
Discover what drives each step in the chain Illustrative example:
Aware of games
Positive affinity
Access games
Purchase game
Gaming consumer
Gaming customer
high prizes, and fun to play.
Now that we know what games we will consider playing, we think of where we can make the purchase or gain access to the game
Now that we have access to the games, we will play the one that is most enjoyable or if we think we can win prizes
Important to awareness:
Important to affinity:
Important to access:
Important to purchase:
Marketing activities
1. Amount of prize
1. Store distribution network
1. Enjoyable to play
2. Fun to play
2. Digital platforms
2. Easy to get help
3. Reputable/popular
3. One-stop-shopping
3. Attractive prizes
Before we make any decisions on where to purchase gaming tickets, we think about what games are out there
We will consider games that are reputable/popular, have
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ROCESS
OUR PROCESS 25
Our process & timing
1. Stakeholder interviews Timing: ~ 1w We want to hear from tho se who know the most: O LG stakeholders. What key segments or categories (i.e. young professionals, online games, race betting, etc.) do we want to learn more about, potentially pursue as growth opportunities? Scope of work includes up to 10 opportunities
2. Triage the data Timing: ~ 0.5w To save both time a nd cost, Fusion will avoid duplicated eff ort by auditing wha t data OLG already has and can be lever aged today vs. what new research we ne ed to gather.
3. Collect the data Timing: ~ 2w What does the ideal research plan and survey design look like? Fusion will compile all research materials and ensure stakeholder alignment, while incorporating feedback from all parties prior to launch. Sample size of 3,000 engaged Ontario respondents.
4. Triangulate & integrate Timing: ~ 1w How much sales and profit opportunity does each segment represent? What are OLG’s key bottlenecks? Are all data sources agreeing? Fusion will rack and stack these opportunities and identify the lowest hanging fruit. All insights will be integrated with each other to give one-version-of-thetruth.
5. Activate insights Timing: ~ 2w How do we go after these opportunities? Put insights into action by activating the right behavioral and categorical drivers and adopting bestin-class tactics.
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Thank You!
CONTACT US: Website: www. fusionanalytics.com Email: www. fusionanalytics.com Linkedin: www.fusionanalytics.com