Balancing Price Points
Susan S. Clayton, Director of Products, Louisiana Lottery
Our marketing strategy for $1 and $2 scratch-off games aims to strike a balance between promoting higher price point games and maintaining sales levels for the $1 and $2 categories. While the Lottery has historically focused on moving players to higher price points, it is crucial to sustain sales in the $1 and $2 price points to uphold an optimal overall prize payout percentage.
To achieve this, we maintain a price point positioning approach and emphasize the value proposition of the $1 and $2 games. These categories serve as an entry level for new and lapsed players, attracting a diverse audience. Additionally, we recognize the appeal of niche and holiday-themed games at the $1 and $2 price points, which further engage players.
Our primary objective remains to fulfill our mission of generating maximum revenues for the state. We do not foresee a point where the $1 and $2 games could be eliminated, as they will always be essential to our operations.
Through strategic marketing efforts, we will continue to support and promote $1 and $2 scratch-off games while expanding our offerings to cater to diverse player preferences. We recently introduced the $20 price point, appealing to players seeking a more premium gaming experience. By effectively managing our product mix and appealing to new and existing players, we aim to maximize revenue and maintain a sustainable and successful product portfolio.