Fusion Analytics - Introduction Deck

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

3

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

8

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

86

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