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Cineplex
Entertainment: The
Loyalty Program
Analysis by-
Akash PATIL
Bhumit KOTHARI
Case Blazer II
Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion
Synopsis of a Case
 Founded: 1979
 2003: Merged with Galaxy Entertainment Inc.
 2005: Acquired Famous players
 Brands:...
Synopsis of a Case
 65% Market share- Privacy, rental movies, etc.
 Developing new markets: Live markets, wrestling
matc...
Segmentation
Segmentation
Teenagers
Young
Adults
Young
working
Young
families
Older
families
Retirees
Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion
Problems in a Case
 Increase and stabilize Cineplex’s inconsistent
revenues.
 Could loyalty program be implemented ?
 I...
Sub Problems
 Customer spending & frequency
 Program to launch regionally or nationally?
 Choose loyalty partner
 Mark...
Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion
Case Inferences
 Current Market share: 64%
 95% respondents interested- Rewards program
 56% respondents- 10% discount
...
2005 2004 2003
Total Revenue 490299 315786 295540
Cost of operation 421529 248818 242636
Gross income 68770 66968 52904
Am...
1…
2…
17.90%
Gross Income%
2005 2004 2003
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Net Income
Chart Title
2005 2004 2003
2005 income has been fall by ...
Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion
Case Recommendations
 Launch Program: Regionally
 Loyalty Partner: Internal development
 Preliminary Reward structure: ...
Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion
Conclusion
 Loyalty program
 Retain existing customers
 Acquire new customers
 Build relationships
 Create brand advo...
Thank you!
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Case Study Analysis: Cineplex Entertainment: The Loyalty Program

65% Market share- Privacy, rental movies, etc.
Developing new markets: Live markets, wrestling matches, hockey games, etc.
Optimum Segmentation
Customer Relationship Management (CRM)
Profitable Segments: Teenagers, young adults, etc.

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Case Study Analysis: Cineplex Entertainment: The Loyalty Program

  1. 1. Cineplex Entertainment: The Loyalty Program Analysis by- Akash PATIL Bhumit KOTHARI Case Blazer II
  2. 2. Contents  Case Synopsis  Problem Definition  Case Inferences  Case Recommendations  Conclusion
  3. 3. Synopsis of a Case  Founded: 1979  2003: Merged with Galaxy Entertainment Inc.  2005: Acquired Famous players  Brands: Cineplex Odeon, Galaxy, Famous Players and Cinema City  “an exceptional entertainment experience”
  4. 4. Synopsis of a Case  65% Market share- Privacy, rental movies, etc.  Developing new markets: Live markets, wrestling matches, hockey games, etc.  Optimum Segmentation  Customer Relationship Management (CRM)  Profitable Segments: Teenagers, young adults, etc.
  5. 5. Segmentation Segmentation Teenagers Young Adults Young working Young families Older families Retirees
  6. 6. Contents  Case Synopsis  Problem Definition  Case Inferences  Case Recommendations  Conclusion
  7. 7. Problems in a Case  Increase and stabilize Cineplex’s inconsistent revenues.  Could loyalty program be implemented ?  If recommended going ahead with program, which loyalty partner should be used?  How would the reward be structured and promoted?  What would be the promotional campaign entail, and how should the launch take place?
  8. 8. Sub Problems  Customer spending & frequency  Program to launch regionally or nationally?  Choose loyalty partner  Marketing communications
  9. 9. Contents  Case Synopsis  Problem Definition  Case Inferences  Case Recommendations  Conclusion
  10. 10. Case Inferences  Current Market share: 64%  95% respondents interested- Rewards program  56% respondents- 10% discount  Net income has been affected by Interest on long term debt, Interest on loan, loss on debt  Operation costs in 2005 increased as compared to 2003 and 2004
  11. 11. 2005 2004 2003 Total Revenue 490299 315786 295540 Cost of operation 421529 248818 242636 Gross income 68770 66968 52904 Amortization 42948 - - Loss on debt 4156 - - Impairment assets 4296 - - Loss (gain) on disposal assets 122 (111) (92) Interest on long-term debt 18401 8280 4020 Interest on loan 14000 14000 1381 Interest income (378) (473) (922) Foreign exchange gain - - (3696) Income taxes (1463) (1149) 366 Income from discontinued operations 28116 6357 6184 Non-controlling interest 1828 - 304 Net Income 12976 30248 39323 14% 21% 18%
  12. 12. 1… 2… 17.90% Gross Income% 2005 2004 2003
  13. 13. 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 Net Income Chart Title 2005 2004 2003 2005 income has been fall by 57 2004 income has been fall by 23
  14. 14. Contents  Case Synopsis  Problem Definition  Case Inferences  Case Recommendations  Conclusion
  15. 15. Case Recommendations  Launch Program: Regionally  Loyalty Partner: Internal development  Preliminary Reward structure: Option 3  Marketing Communication campaign: Social Media, Radio  Database vendor: Alpha
  16. 16. Contents  Case Synopsis  Problem Definition  Case Inferences  Case Recommendations  Conclusion
  17. 17. Conclusion  Loyalty program  Retain existing customers  Acquire new customers  Build relationships  Create brand advocates
  18. 18. Thank you!
  • jaybhimani99

    Feb. 13, 2020
  • ssusere1a46f

    Jun. 16, 2018

65% Market share- Privacy, rental movies, etc. Developing new markets: Live markets, wrestling matches, hockey games, etc. Optimum Segmentation Customer Relationship Management (CRM) Profitable Segments: Teenagers, young adults, etc.

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