Grafica Inc Case

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Grafica Inc.: Winning the New Jersey Lottery
Designing and Managing Integrated Marketing Communications


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Grafica Inc. was an advertising firm started my Ms Debra Taeschler in 1986 with her colleague, working in Landmark Associates and her husband John Taeschler. By 1998 Grafica had grown in full-service advertising agency. It was located in Chester New Jersey and it was particularly well-known for its expertise in integrated marketing approach to customer relationship management and its expertise in using digital technologies in marketing communications and advertising. In 1999 the Grafica was presented with an opportunity to bid for the New Jersey Lottery account. The New Jersey Lottery account would be a very big gain for Grafica as the account wanted an agency which could provide them with a whole range of services- television, radio, print, outdoor advertisements and would also get to provide professional consulting, ongoing marketing strategy and market research. It was in perfect congruence with Grafica’s core competency of umbrella or integrated marketing.

Grafica Inc.
Grafica Inc. was started by Debra Taeschler and John Puglionisi in the year 1986 in the Taeschlers’ basement apartment. By the year 1998 it had grown into a full service advertising agency. It was well known for its integrated marketing approach to customer relationship management and its expertise using digital technologies in marketing communications and advertising. The New Jersey Lottery

The New Jersey Lottery was created by an amendment to the state’s constitution in the year 1969 and started the sale of lottery tickets in December 1970. Starting with revenue of $72million in the first year the annual sales grew to $1.6 billion in the year 1998. Out of the total sales 51% of it went to the players in the form of prizes. In 1998, 52million winners had taken home more than $868 million in winning prizes. Against the popular perception of public that only those who were poor, uneducated, and “down their luck” purchased tickets and it took advantage of this lack of education by pushing a product that its target audience could ill afford, it was generating funds for the state. In total it had generated $9.5 billion in state funds since its inception. These state funds benefited various state education programs and institutions.

Mission Statement:
“The mission of the New Jersey Lottery is to raise revenue for maximum contribution to education and institutions benefiting the citizens of New Jersey through sale of lottery products. We accomplish this by providing entertaining products through a dynamic public business enterprise built upon honesty, integrity, customer satisfaction, teamwork and public/private partnerships.”


| Pick-6 Lotto| Pick-4 Lotto| Pick-3 Lotto| Instant Tickets| Cost to Play| $1 | 50cents| 50cents| $1 to $10|
Maximum Top Prize| Varies, Depending on Roll Over| Pari-mutuel| Pari-mutuel| $10k to $50k for most games, $150k for 2-3 games each year| % of lottery sales| 18%| 16%| 28%| 32%|
Sales Trend| Declining for past 3 years| Declining for past 3 years| Declining for past 3 years| Growing for past 12 years| Product Life Cycle Stage| Maturity| Maturity| Maturity| Growth| Demographics| | | | |

Sales(1998)| $291million| $253million| $452million| $519million| %Change w.r.t 1997| -14.60%| -2.21%| -2.50%| +35.30%|
Promotional Support| None since 1997, other than billboards| No recent support| No recent support| Almost entire budget used to promote new instant game introductions|

Issues Faced by the New Jersey Lottery

* Shrinking sales of mature products as indicated in the products table above * Low public awareness of the benefits of this program which contributed about 39% of total revenues to state funds * Public perception that lottery tickets are...
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