Increasing the price of

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EuroMillions in the UK. Increasing the price of. by 33.3%. $7.5 billion p.a. game Operating across 10 European lotteries, 3 currencies, 2 time zones Weekly sales from $200 million, ranging up to $400 million per week. - PowerPoint PPT Presentation

Transcript of Increasing the price of

Increasing the price of

EuroMillions in the UK

by 33.3%

$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

The inside story ….of a price increase, without a drop in player participation

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:

LOTS OF POS

LOTS OF PALLETS!

Entire company got involved

Even the Mayor of London mucked in!

3rd Licence from Feb 2009 - 5 year Game Plan/Pipeline

Beyond the Core

Refresh & Optimise the

Core

Extend the Core

Time

Turnover

Beyond a credit crunch

Dianne Thompson , Group CEO, Camelot Group

The consumer has always been our boss in everything we do

Spot the person wanting a price increase…

But done right….brands can command a premium price

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 ”

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

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

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…

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.

Consistency at every touchpoint

Gold Union Jack Pinball used as the consistent brand icon throughout the communications

Retailers

• Needed to reassure them

• Focused approach

• Cash benefit

• Complete saturation

Across every touchpoint

• Counter card

• Ticket Message

• Media Screen

• Customer hotline

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

Broadcast − Press and Radio

Online and Digital

• Driving registrations

• Sign-posting

• Fulfilment

Broadcast − TV

To help create mass visibility and awareness…

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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B123B12BB1DBBB12BB1B1B1B1234BDB1BB1BB123B123BBB123BBBB123456BBDB1B12BBB1BBB123BB1BB12MB1B123456BB123BB123B1234B12MBB12345BBB123B123B1MM+1

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Total EM Sales

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

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lotto Sales EM Sales

Price increase

Lotto sales

Not really…….in 2010

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

Not really…….in 2012

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