Retailer optimization using market segmentation top quintile process

• US 20070112619A1
• Filed: 11/17/2006
• Published: 05/17/2007
• Est. Priority Date: 11/17/2005
• Status: Active Grant

• Current Assignee: Scientific Games Corporation
• Original Assignee: Scientific Games International Incorporated (Scientific Games Corporation)
• Inventors: Hurt, John, O'Brien, Jim, Flinn, Michael
• Granted Patent: US 7,885,851 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration

Abstract

A method for determining an optimal number of lottery retailers is disclosed. The optimal number of lottery retailers for a region can be determined based households of the same segmentations purchasing lottery products similarly, and there is a strong correlation between lottery agent density (population/retailers) and per capita lottery sales. The lottery agent density (LAD) necessary to produce high per capita sales can be identified and applied to all markets of that household segmentation.

Claims

1. A method for obtaining an optimal number of retailers in a geographical area, the method comprising the steps of:

obtaining demographical data for a plurality of regions, each region being identified by a region identifier, the demographical data containing population information, retailer count, sales figures, retailer density count, and per capita sales information, the demographical data being segmented into subgroups;

for each subgroup

determining a top percentage of regions based on the population information,

determining an average sales figure for the top percentage of regions, and

determining an average retailer density count for the top percentage of regions; and

computing the optimal number of retailers based on the average sales figure and average density count.

2. The method of claim 1, further comprising the step of computing an expected sales figure for the optima number of retailers.