Increasing the price of
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Transcript of Increasing the price of
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Increasing the price of
EuroMillions in the UK
by 33.3%
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$7.5 billion p.a. game
Operating across 10 Europeanlotteries, 3 currencies, 2 time zones
Weekly sales from $200 million, ranging up to $400 million per week
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The inside story ….of a price increase, without a drop in player participation
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Player participation growth by a further 5% of all adults - to 33%
11% increase in number of tickets sold
7% adjustment in boards played
Revenue growth of 38%
The results…..48 weeks post
£1.50 to £2:
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LOTS OF POS
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LOTS OF PALLETS!
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Entire company got involved
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Even the Mayor of London mucked in!
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3rd Licence from Feb 2009 - 5 year Game Plan/Pipeline
Beyond the Core
Refresh & Optimise the
Core
Extend the Core
Time
Turnover
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Beyond a credit crunch
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Dianne Thompson , Group CEO, Camelot Group
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The consumer has always been our boss in everything we do
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Spot the person wanting a price increase…
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But done right….brands can command a premium price
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Against a backdrop of the need for growth, UK players felt nobody ever won in the UK
“You’re not just up against the UK but the whole of Europe”
“Nobody ever wins in the UK”
“EuroMillions is that game that is run somewhere in Europe,
and all the money goes to good causes there ”
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Our objectives were two-fold
Drive further brand growth and therefore deliver greater returns
for Good Causes
Overcome UK resistance to EuroMillions and reward players with
more of a UK winning experience
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The strategy….
• Increase the price of the game by 33% to £2
• Introduce the UK Millionaire Raffle…..£1m prize guaranteed each and every week in the UK on top of the chance to win big jackpots
• Funded by the increase in priceraised by the additional 50p
• All players automatically entered for every line they play
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ExciteGuaranteed UK
MillionaireLed by Above
the Line
InformDon’t just see the
50p as a price hike Retailers
and Below the Line
IntegratePrice rise linked tothe benefit of the millionaire raffle
Telling the story…
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Campaign message
This Friday, the EuroMillions jackpot is a massive £82m.
EuroMillions is now £2 and includes the new Millionaire Raffle where every week, one lucky UK player will win £1m – guaranteed.
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Consistency at every touchpoint
Gold Union Jack Pinball used as the consistent brand icon throughout the communications
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Retailers
• Needed to reassure them
• Focused approach
• Cash benefit
• Complete saturation
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Across every touchpoint
• Counter card
• Ticket Message
• Media Screen
• Customer hotline
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TV Advertising pivotal to the plan
• Would ensure quick coverage in terms of players reached
• Offering the best platform for engagement and excitementand was a proven channel for us in terms of return on investment
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Broadcast − Press and Radio
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Online and Digital
• Driving registrations
• Sign-posting
• Fulfilment
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Broadcast − TV
To help create mass visibility and awareness…
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Business results…..pre and post
Total EM Sales
£0
£10,000,000
£20,000,000
£30,000,000
£40,000,000
£50,000,000
£60,000,000
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Total EM Sales
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Pre vs. Post£2 price point(48 Weeks)
TicketsTotal over 48 weeks
Spend per Ticket -Avg
Lines Per TicketAvg over 48 weeks
SalesTotal over 48 weeks
+11%
224.6m to 248.7m
+24%
£2.98 to £3.70
-7%
1.96 to 1.82
+38%£669.5
to £920.9m
Source Camelot Sales from Apr 07 – We/ 4 Oct 2010
Business results…..
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
wk21
wk22
wk23
wk24
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wk26
wk27
wk28
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wk31
wk32
wk33
wk34
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wk45
lotto Sales EM Sales
Price increase
Lotto sales
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Not really…….in 2010
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Not really…….in 2011
2 guaranteed UK Millionaires made every week
174 UK Millionaires made by 2nd anniversary this Nov
Clear scope to grow further
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Not really…….in 2012
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Looking ahead to $2 Powerball
Napoleon: “I base my calculations on the expectation that luck will be against me.”
“It’s the consumer perception, stupid’
total uk EuroMillions sales p.a.
£0.0
£200.0
£400.0
£600.0
£800.0
£1,000.0
£1,200.0
£1,400.0
£1,600.0
£1,800.0
2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12