Competition Fundamentals Part 5

In this article we discuss the process of competition design, ensuring the competition is conducted in accordance with the terms and any required permits.

Step One- Consider your objective

The first step is to consider what you want to achieve by conducting a competition. Common reasons for conducting a competition include:

  1. To encourage loyalty;Modern business concept
  2. To increase sales of goods or services;
  3. To incentivise sales staff;
  4. To launch a new product or service; or
  5. To gain insights into customers.

When planning, executing the competition and subsequently analysing the results it is important to come back to the work you have done at this step. The measure of success will be framed in this context.

Step Two- Plan the promotion

The second step is to plan the promotion mechanic, prizes, and timings. Here are some questions to consider:

  1. How will entrants consider their chance of wining a prize?. i.e. if you offer more prizes your entrants may feel more comfortable with their chance of winning. It is important to be clear with entrants and not to overstate the chances of winning. It is less commonly known that the chance of winning a prize in a competition is typically much greater than of winning a cash prize in a typical national lottery.
  2. Is the value of the prize commensurate to the difficulty of entry or the purchase required? i.e. if you are only asking for someone to provide their contact details, is it worthwhile giving away a million dollars? Equally if you expect someone to purchase a product, enter their details, answer questions will a low value prize attract many entries?
  3. Are you able to meet the timings and dates specified. Be careful to ensure that you are able to open, close, draw promotions in accordance with the dates specified in your competition. Also ensure you allow about a month between applying for competition permits and your first print deadline- as you need to include permit numbers in all advertising.
  4. Are people going to hear about your promotion? There is no point in building a website and expecting people to come. A competition must be integrated into a campaign which includes advertising that will reach your intended audience.

Step Three- Document and get approvals

Any promotion should be supported by clear terms and conditions which document the competition rules. Click here for considerations when drafting terms and conditions. The lottery departments have a number of requirements which you must comply with in respect to timings and inclusions in the terms.



Permitz Group can assist you with each of the above aspects. Whilst we specialise in competition permits we also have experience in sourcing prizes, assisting with competition design, developing a competition website, conducting an electronic competition draw, and managing winners. Once you have terms ready you will then need to apply for competition permits- refer to our earlier posts for more on this.