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EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION

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Instant Lotteries<br />

Overall, 7Extra consumer base remains<br />

small and quite specific.<br />

The acceptance of such high price point<br />

tickets is based on several factors. With a<br />

high price point, players expect:<br />

• A game with better odds,<br />

• More scratch-off zones and games<br />

than what is offered on 3-5e tickets,<br />

• A high top prize,<br />

• Obviously lots of intermediate prizes<br />

(between 30e and 200e), which provide<br />

an attractive return on investment.<br />

Since the top prize for 5e tickets (with 5<br />

games inside) was already 50 000e, we<br />

decided to opt for a 100 000e top prize<br />

for the 10e 7Extra ticket. It ranks n°2<br />

within the gaming range (behind Millionnaire<br />

top prize of 1Me).<br />

The payout is another important factor.<br />

For 7Extra, we are offering a payout percentage<br />

of 70% and it’s among our largest<br />

payouts of our game mix:<br />

1e games: 62.5% or 63%<br />

2e games: between 60% and 66%<br />

3e games: between 68% and 70%<br />

5e games: between 68% and 75%.<br />

7EXTRA Sept. 13th, 2007 edition<br />

750 000 printed tickets<br />

overall odds : 1 out of 4<br />

No. of prizes Prizes Total<br />

1 100 000 e 100 000 e<br />

9 1 000 e 9 000 e<br />

500 100 e 50 000 e<br />

4 500 50 e 225 000 e<br />

10 000 30 e 300 000 e<br />

27 400 20 e 548 000 e<br />

51 920 15 e 778 800 e<br />

93 170 10 e 931 700 e<br />

310 000 5 e 1 550 000 e<br />

252 500 3 e 757 500 e<br />

750 000 5 250 000e<br />

TRJ 70,00%<br />

Since we launched our latest sport event<br />

game (5e Pékin 2008) with a 75% payout<br />

percentage, we plan to relaunch 7Extra<br />

soon, increasing the product payout<br />

to 75%. We are also considering launching<br />

tickets in 2009 or 2010 in the 20e or<br />

more price range, but we will first further<br />

enrich our 5-10e range.<br />

Beside 7Extra, la Française des Jeux<br />

runs a promotional operation for Christmas<br />

and New Year that consists of a gift<br />

pack filled with tickets sold at a price<br />

point of 20e.<br />

This promotional activity started in 1994<br />

and is now a major consumer rendezvous.<br />

It consists of 4 different gift packs, each<br />

of them filled with FDJ standard tickets<br />

whose cumulative value equals 20e. The<br />

selling period extends from early December<br />

to mid January.<br />

These offers of gift packs have been renewed<br />

regularly:<br />

1992-1996: Classical gift packs<br />

1997: Pop-up gift packs<br />

1998: Musical gift packs<br />

1999: Calendar gift packs<br />

2000-2002: Musical gift packs<br />

2003-2005: Glossy gift packs<br />

2006: Zip gift packs<br />

2007: Zip gift packs (with hologram)<br />

They are always strongly advertised<br />

through TV, radio, Internet and POS material.<br />

Since a lot of them are offered to<br />

non-consumers, they are one of the best<br />

means to recruit new consumers for this<br />

category.<br />

Example of 2007 gift pack:<br />

11<br />

P AN RAMA<br />

POS material avertising 2007 gift packs:<br />

This operation is a true consumer success<br />

and boosts scratch-off game sales by<br />

25-30% compared to an average week.<br />

Overall, additional sales account for 2%<br />

of yearly total sales.<br />

Though a promotional event, gift packs<br />

now tend to be considered as a product<br />

in itself by consumers.<br />

Additional sales generated by gift packs<br />

N.B. : 2001 results have been badly<br />

impacted by the change of currency<br />

(switch to euro).

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