How to organise a lottery?
The principles of organising lotteries are set forth in the Polish Gambling Act. It is an administrative process which involves proceedings before the Director of the Tax Administration Chamber, the Head of the Fiscal and Customs Office and Heads of Tax Offices.
To organise a lottery, it is necessary to prepare its terms and conditions. Along with an application and a bank guarantee for paying out or handing over prizes, and terms and conditions have to be filed with a public administration body to obtain a lottery permit.
Moreover, organising a promotional or phone lottery entails the obligation to have a certified gaming device to pick out the winners, as well as numerous records to write down the handover of prizes of a specific value. Finally, you need to file a report on the course of the lottery.
Organisation of promotional and phone lotteries
Promotional lotteries are short-term actions which boost sales. Lotteries target final purchasers or trade agents, offering attractive prizes in exchange for purchasing products.
The main advantages of promotional and phone lotteries organised by an external company
You can organise a lottery on your own or entrust this task to a professional entity. The main advantages of entrusting the organisation of a promotional lottery to experts in this field is that you save time and money, as well as sparing your nerves. Most importantly, you can be sure that everything will be organised in accordance with the law. At the same time, the consequences of potential mistakes will be faced by an external company.
Organising a lottery is similar to a dentist appointment: we can technically pull a tooth out on our own, but nobody questions the need to go to an expert. The same arguments apply to lotteries. Working with an experienced company that has organised hundreds of lotteries has no disadvantages and eliminates risk.
What requirements have to be met to organise a lottery?
Apart from preparing the relevant documents, in order to organise a lottery, the entity applying for a lottery permit (which is issued by the Director of the Tax Administration Chamber) cannot be in arrears with taxes, customs duties and social insurance contributions, has to provide a bank guarantee for handing over or paying out prizes and provide documentary evidence that the resources allocated to organise the lottery come from a legal source. Moreover, it is necessary to train employees involved in the organisation of the lottery. They need to know the terms and conditions of the lottery and the provisions of the Polish Gambling Act. When the permit is issued, the terms and conditions have to be followed with no exceptions.
How can a company benefit from a promotional lottery in terms of PR and sales?
Lotteries are organised to boost sales to final purchasers and increase the market share within a short period.
When we organise a lottery, we promise purchasers that in exchange for buying our products, which is a requirement set forth in the terms and conditions, they will participate in the drawing of attractive prizes. Of course, prizes will be given only to the lucky ones who will be randomly picked out, but attractive prizes encourage many participants to buy the promoted product. And it boosts sales. Lotteries impact customers in different ways. First of all, they encourage participants to buy more. For example, I used to buy 1 bar of chocolate a week, but because I want to win the car prize, I will buy two bars to increase the odds. For me, as a participant, it is hardly a large expense, but from the manufacturer’s point of view, I doubled my shopping cart value. Moreover, lotteries boost sales because people start to shop more often. For example, so far, I used to fill my tank at a petrol station of a given brand half the time, but now I want to win the lottery, so I will stop there every time I need fuel.
The most important determinant of demand, which makes promotional lotteries increase sales so much, is encouraging customers to choose a different brand. Let’s assume that I used to buy the washing powder of a specific brand. If its competitor organises a lottery and I have a chance to win attractive prizes, I am willing to buy a product of a different brand than the one I regularly buy. This final factor of demand corresponds to almost a half of cases when sales increase as a result of a lottery.
Types of lotteries
In Poland, we can organise three types of lotteries: promotional lotteries, phone lotteries and prize draws. The most popular type is the promotional lottery, in which you participate by buying a product or service or doing something else that is required to participate (e.g. throw your business card into a box at a conference). It means that you gratuitously participate in a lottery with cash and non-cash prizes. The promotional lottery is the most popular marketing technique used to boost the sales of goods and services.
Examples of our lotteries
At i360, we have organised hundreds of lotteries. Our biggest achievements included a lottery for E washing powder, which consisted in putting suitably packed coins and banknotes inside washing powder boxes.
When consumers bought the washing powder, they did not know whether it contained a prize or not. The total prize budget was PLN 1 million and the campaign led to a significant increase in sales and market share. Moreover, it created a very positive image of the brand.