Tabcorp is one of the largest wagering businesses in the world with its iconic TAB brand a quintessential element of the Australian high street and local pub. It holds the exclusive license to operate retail stores in Victoria, New South Wales and the ACT. Operating a network of approximately 3,000 outlets, comprising its pub and club partners and its own agencies, Tabcorp provides an entertaining sports and racing experience to over 1.5 million customers. However, the entry into the Australian market of digital-only competitors, such as Ladbrokes and William Hill, has brought intense competitive pressures and the erosion of Tabcorp’s traditional competitive advantages.
Securing the retail business and positioning for growth
To secure and grow its position within the industry, during a time of changing customer behaviours and aggressive competitive pressures, Tabcorp engaged GSG to facilitate the development of a three-year strategic plan for the retail business. This plan set out a unifying, motivating and achievable view of future success for the retail business, define a clear, compelling and differentiating value proposition for Tabcorp’s customers and channel partners, and a set of strategic initiatives to help grow venue visitation, wagering participation, and advocacy of customers and partners.
Bringing the customer and channel partner into the development of the strategy was pivotal. This ensured that we recognised and understood the key issues and to use their expertise and experience to help co-create solutions for them. On the kick off meeting we took over thirty Tabcorp leaders in a fleet of 12 taxis to venues in Sydney to get a first hand view of the network. In fact, the combined Tabcorp and GSG team met hundreds of customers in over 100 venues in order to identify the most significant road blocks to achieving sustainable success, but also to expose a number of significant opportunities for growth in participation, advocacy and revenue. Together with extensive consultation across the business, industry stakeholders, input from existing research, and workshops with groups of customers and channel partners, we created a robust fact base and important insights to drive the development of the strategy.
Defining the critical competencies and initiatives to ensure success
Armed with a clear understanding and acknowledgement of the challenges facing the business and the ‘within reach’ growth opportunities, a co-creation session with senior Tabcorp management proved to be the catalyst in defining a view of future success for the business. Removed from day to day distractions, participants described a realistic view of success in three years time and what competencies the business must truly excel at to deliver this.
Delivering an actionable and achievable roadmap
With consensus on ‘what success looks like’, GSG facilitated an iterative and interactive action planning process, where specificity was key! This culminated in a clear roadmap of initiatives and actions, a quantified growth target and a clear plan for low-risk execution.