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Competition draws: Manual vs electronic

By Sharmila Pamamull, Senior Counsel

29 July 2020

Trade promotions are used by marketers to increase brand awareness, brand loyalty and attracting new customers. These promotions can be games of skill or game of chance.

Games of chance competitions require a winner to be drawn at random.

Competition draws may be completed either manually or electronically.

The following are examples of each draw mechanic:

· Manual: printed entry form drawn from a container/barrel

· Electronic: use of a computer program or Microsoft Excel to randomly select winners

The following considerations apply in determining whether you choose to conduct a draw electronically or manually:

1) Entry Mechanic:

a. Printed entry forms: If you are collecting printed entry forms the simple approach is to conduct the draw manually, rather than including all entries in a spreadsheet and drawing electronically. However, you may also want to add the entry data into an excel spreadsheet with one entry per row to ensure you can enforce any entry limits e.g. if there is a maximum of 1 entry per person, it is easier to remove duplicates electronically then checking entries one by one by hand.

b. Online entries: On the other hand, if you collect entries via an online entry form, it is simpler to conduct the draw using a computerised drawing system. If you are anticipating 1,000’s of entries, it will be a time burden to print each entry individually and then draw from a barrel/container. There are options to conduct a draw manually with less intensity but it may not be the preferable method for most. E.g. if you receive 600 entries, print a pile of numbers 0-6 for the 100’s, 0-9 for the 10’s, and 0-9 for the 1’s. If you draw 4 for the 100s’s pile, 6 for the 10’s, and 2 for the 1’s, then the winning number would be 462.

2) If an Electronic draw, do you need an approved drawing system?

a. If your promotion is conducted in SA, you will need an ‘approved’ drawing system.. The application form and details are available at: https://www.sa.gov.au/topics/business-and-trade/running-a-business/trade-promotions/trade-promotion-electronic-drawing-system. An independent test report must be submitted with the application; and the SA electronic draw approval number must be quoted on any trade promotion permit application in SA. Importantly, the approval number is required even if you do not need a permit in SA.

b. To avoid the need to obtain approval of an electronic drawing system (which can be a tedious process), you can simply contact Plexus to conduct your electronic draw OR conduct the draw manually (see point 1 (b) above for details).

Other Considerations when conducting a draw:

Need assistance with your promotion draw? Plexus Promotion Wizard can help.

Try Promotion Wizard today

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