As the biggest race in the horse racing calendar, the Grand National, approaches this weekend, bookmakers are kicking their marketing efforts into overdrive.

But there is perhaps one betting company that does it better than any of its rivals — Paddy Power.

The Irish company, which was founded in 1988, has grown to become one of Europe’s biggest bookies — a position it solidified by merging with online rival Betfair in 2015.

Retail Week picks out five lessons retailers could learn from Paddy Power.

Embrace consolidation

In such a fiercely competitive and fragmented market – there are around 40 British-based online bookmakers alone – the digital betting sector was ripe for consolidation.

Paddy Power’s bold and ambitious bosses were among the first to recognise and seize that opportunity.

In August 2015, just weeks after store-focused rivals Ladbrokes and Coral had agreed merger terms, Paddy Power penned a similar deal with online competitor Betfair.

The £7bn mega-merger, structured as an acquisition of Betfair by Paddy Power, was completed in February 2016 and made the enlarged business the online market leader with an estimated 16% share.

Since then, GVC Holdings has taken over Bwin.party, while William Hill has twice abandoned merger talks, first with 888 Holdings and then PokerStars owner Amaya.

Dixons and Carphone Warehouse is arguably the best example of two retailers that have merged to create a retail supergroup in the past decade, but perhaps those in densely populated markets such as grocery and fashion should seek similar openings to boost market share and establish cost synergies.

Build a multichannel experience

Paddy Power may be better known as an online brand these days, but like many of its biggest bookmaking rivals, it actually started off as a bricks and mortar business when three Irish bookies – Stewart Kenny, David Power, and John Corcoran – merged their 40 shops.

Despite since growing to more than 350 shops – which offer an interactive, media-rich betting experience using touch screens – it was one of the first bookmakers to properly capitalise on the online betting boom.

”The Paddy Power Cash Card allows customers to withdraw their winnings online instantly from any of its stores”

Its mobile app has developed into one of the easiest to use in the business, offering markets on staple sports such as football, horse racing and golf, as well as a host of novelty bets, offering odds on everything from Southern Rail cancellations to what age Prince George will first be photographed in a nightclub.

Paddy Power has also gone a step further than most when it comes to blurring the lines between bricks and clicks.

When gambling with most online bookies, customers withdraw funds from their betting account but can wait up to five days to see the money appear on their bank balance.

The Paddy Power Cash Card allows customers to withdraw their winnings online instantly from any of its stores.

Argos has been one of retail’s shining lights when it comes to embracing multichannel, shifting from a catalogue model to a predominantly online business that now, like Paddy Power, does a large proportion of its sales on mobile.

Maintain a distinctive brand voice

It can often be hard to get your voice heard in a congested marketplace, but Paddy Power has cleverly carved out a niche to make it stand out from the crowd.

Paddy has built on its Irish heritage, creating a ‘cheeky chappy’-style persona that underpins everything the business does, from content to marketing to the very markets it offers odds on.

For instance, its Twitter account – which promises “betting and sports news served with a side of mischief” – regularly mocks Premier League footballers and managers during televised games.

And its comical and sometimes bolshie advertising regularly makes headlines – its ‘Orange is the new Black?’ slogan ahead of last year’s US election, which poked fun at Donald Trump’s skin tone in contrast to Barack Obama, is a prime example.

Frozen food specialist Iceland has attempted to adopt a similarly playful brand voice, particularly with its social media work during Euro 2016, while Ted Baker’s consistent tone has helped it maintain its upmarket position and solid customer base across various international markets.

Paddy Power Is Orange the new Black? billboard  2016 US election

Paddy Power Trump billboard

Paddy Power’s controversial ‘Is Orange the new Black?’ billboard ahead of the 2016 US election

Create engaging content

Establishing such a strong, distinctive brand voice is just the first part of the battle – they are useless unless they is put to good use.

Paddy Power keeps its light-hearted, jokey tone flowing throughout an array of engaging content that is the envy of its bookmaking rivals.

Far from just being a bookmaker, Paddy has become a content creator in its own right, regularly publishing podcasts, blogs, videos and Snapchat stories, centred around big sporting events to ramp up interest and, ultimately, sales.

It has even drafted in the likes of two-time Grand National winning jockey Ruby Walsh to take part in videos and podcasts, increasing its credibility and appeal.

Asos and Net a Porter have arguably become the market leaders in retail when it comes to creating content that drives repeat visits from customers. But plenty of other retailers could learn from Paddy Power in their efforts to do the same.

Reward loyal customers

In the hotly contested online betting market, the likes of Ladbrokes, Coral, Bet365 and SkyBet regularly roll-out huge offers in a bid to lure new customers, such as £30 in free bets when you deposit £10.

But failing to recognise and reward the loyalty of existing customers can be to shoot yourself in the foot.

Yes, Paddy Power offers a host of welcome bonuses and promotions too, but it arguably rewards its faithful punters better than any of its competitors.

”Paddy Power offers ‘Justice Payouts’, paying customers even on occasions when their bets have actually lost”

Paddy Power offers ‘Justice Payouts’, paying customers even on occasions when their bets have actually lost.

For example, when Spanish football giants Barcelona had a clear goal disallowed in a 1-1 draw with Real Betis in January, Paddy Power settled all bets on Barcelona as winners.

It also runs a ‘2-Up’ offer on all Premier League games, meaning if a team leads 2-0 at any stage, Paddy Power pays out, regardless of the full-time result.

A host of retailers, including Tesco and Boots, reward their customers with loyalty points, but Waitrose and the Co-op have taken their schemes a step further – and both are reaping the rewards in the form of growing sales.

Waitrose gives shoppers a free coffee with every purchase and allows them to pick their own offers under its myWaitrose scheme, while the Co-op gives its members a 5% reward on all own-brand items they buy, donating a further 1% to charity.