Cineplex Entertainment in detail....SWOT, 4Ps, etc. Detailed Case Study, Loyalty Cards, websites, etc.

2. Contents
Conclusion
The Cineplex Entertainment
Loyalty Partner Options
Marketing Strategies
Introduction To Case Study

3. Introduction To Case Study
Sarah Lewthwaite (MD) , Ellis Jacob (CEO)
Inconsistent Revenues each year
Jacob wanted to increase and Stabalize Cineplex’s Revenue.
Lewthwaite was scheduled to present
-: her recommendations on Program Development
-: Type of pomotion campaign under the existing budget constraints.

4. Could A Loyalty Program be implemented in such away to
fit Senior Management?
Which Loyalty Program Will She Choose?
How should the rewards be structured and promoted?
What would the promotional campaign entail, and how
should the Launch take place?

5. Cineplex Entertainment
Founded in 1979, as Cineplex Odeon, by Garth Drabinsky and
Nathan Taylor.
In 2003, Cineplex merged with Galaxy Entertainment
Inc.(Galaxy)
In 2005, Cineplex Galaxy acquired Famous Players & became
Cineplex Entertainment – Canada’s Largest Film Exibitor
The Chain enjoyed approximately 40 million visits per year.
Mission -: Offering Movie-goers ‘an exceptional entertainment
experience.’

6. Cineplex Entertainment
In addition to seeing a movie, Customers could eat at various
branded consession counters or play in the arcade.
In 2005, It expanded its strategy to focus on developing new
markets,
Using theatres’ large screens to showcase Live Events such as
major hockey games, wrestling matches and The Metropolitan
Opera.
These Events cotributed greatly to Cineplex’ Success.

7. Customer Relationship Management (CRM)
Marketing Approach in which Company collects individual purchasing information.
To Improve its ability to understand and respond to Cusomer desires & buying
patterns.
Information stored in Central Database.
Better understanding of Customers enables organization to develop targeted
campaigns,
To increase marketing effectiveness, such as restructuring its products & services.
Other Canadian Cos. following this trend were Shoppers Drug Mart(Optimum Card
Program) and Air Canada (Aeroplan Rewards Program)

8. Internal
Development
Flight Miles
Partnership
Scotiabank
Proposal

9. Internal Development
Benefits to Cineplex :-
• Managers would develop & operate the program
• Know their brand best and have full control over the direction of the
program.
Cost to Cineplex :-
• Entire Cost estimated $5.5million in the first year, with diminishing
costs in subsequent years.
• Fully exposed to financial risk
• Face difficulty in divesting the program if it become unsuccessful.

10. Flight Miles Partnership
The Top Canadian Loyalty program with 72% of
Canadian Households as active Members.
Benefits to Cineplex :-
• Immediate entrance into database of 7 million people.
• Opportunity to access other Flight Miles Partners.
Costs to Cineplex :-
• yearly fees of $5 million,
• To pay $0.09 for each point issued.
• To pay to access data which Flight Miles own.

11. Scotiabank Proposal
One of the Big Five Banks in Canada,
Through 950 branches, it served 6.8 million
Canadians in 2005.
Proposed a Three Cards Reward Strategy.
The Basic Card would be Cineplex-branded.
Scotiabank Debit & Credit Cards would act as
a reward accelarators.
Promotion in Theatres & Bank Branches
across the Country.

12. Scotiabank Proposal
Demerits of this Proposal:-
Constraints in decision making power
(50-50 Partnership),
Not able to access individual level banking information,
Costs to develop and maintain Cineplex Portion of the Partnership
were estimated as follows:
• $3 Million » 1st year.
• $1.7 Million » 2nd year.
• $1.9 Million » 3rd year.

14. Strengths
• Seating arrangements are
comfortable and
customizable to suit the
individual.
• Largest Exhibitor of 3D and
IMAX Projections
• Cineplex Entertainment has
more than 125 theatres
and over 1,300 screens
across Canada from British
Columbia to Quebec.
• Gold class service offers a
unique experience compared to
our competitors
• Convenient Locations.
• Other means of making money;
not only the movies, but also
food, drinks, services.
• Pricing strategy enables a range of
customers to engage in the experience
within their levels of income
– Children
– Concession
– Elderly
– Family Passes

15. Weaknesses
Difficulty In Retaining Customers.
Alternate mediums like DTH, DVD or VCDs can become popular
making the business unattractive.
High level of 'red tape' to clarify from authorities
Limited number of people
High set-up costs.
Traffic congestion

16. Opportunities

17. Threats
Success of theatres are movie specific and this can tilt towards failure with poor
movie scripts.
Alternate sources of Entertainment such as DTH, DVD, Internet can lead to lower sales.
Increase In Entertainment Taxes
Threat of New Entrants.
Weather conditions
Restrictive licenses if the 'red tapes' are not approved by authorities
• Alcohol restrictions and duty of care for the provision of alcohol- own responsibility
• Movie screening licensing
• Number of cars in a given area restrictions

18. 4 P’s Of Marketing

19. Price
Concessional Prices for the Holder Of Loyalty
Cards
Prices for the Ticket and Food are Expensive.
This is their way of creating a barrier between
the upper-class and the lower-class.

20. Price
Weekends and Evenings
I. Adults:- $8.50
II. Students/Seniors :- $6.50
III. Children/Pensioners :- $4.50
 Public Holidays
I. Adults :- $9.50
II. Students/Seniors :- $6.50
III. Children :- $4.50
IV. Pensioners :- $5.00
 Budget Tuesdays
I. Adults :- $6.50

21. Product
Movie Entertainment
Gaming Facilities
Showcase Various Live Events Like,
I. Major Hockey Games,
II. Wrestling matches
III. Stage Shows
IV. Metropolitan Opera.

22. Place
 Burnaby
SilverCity Metropolis Cinemas (UltraAVX)
 Chilliwack
Galaxy Cinemas Chilliwack (UltraAVX)
 Coquitlam
SilverCity Coquitlam & VIP Cinemas (UltraAVX)
 Surrey
Cineplex Odeon Strawberry Hill
 Kelowna
Famous Players Orchard Plaza 5 Cinemas
 Langford
Cineplex Odeon Westshore (UltraAVX)
 Langley
Colossus Langley Cinemas (IMAX & UltraAVX)

23. Promotion
Cineplex Website
Cineplex Store
Mobiles
In Theatre Advertising
Newspaper Advertising
Radio Advertising
Online Advertising
Grass Roots Initiatives

26. People who are :-
very comfortable with
• Online Environment,
• Text Messaging,
• Downloading,
• Browsing.
wants and expects Discounts & Free Offers in an attainable time frame,
Wants simplicity and convenience.

27. Positioning
They have positioned themselves as Entertainers.
Enjoyable and Fun place to visit with Family and Friends.
By showing English and animated movies, they have assured that only people with
Educational background show up.
Their focus is that families, youngsters and children feel comfortable by not
displaying vulgar and offensive posters but decent ones.
“Cinema for the Elite” image has been given to the cinema.
They offer a perfect location, hygienic environment and an experience that satisfies
the taste of their consumers.
Prices for the ticket and food are expensive - This is their way of creating a barrier
between the upper-class and the lower-class.

28. Partnership With Scotiabank
Reasons For Choosing Scotiabank Proposal
I. One of North America's Premier Financial Institutions and
Canada's most International bank.
II. With over 57,000 Employees, Scotiabank Group and its
Affiliates serve approximately 12 million customers in some
50 countries around the world.
III. Promotion in Various Bank Branches across the Country.

29. SCENE LAUNCH PARTY
On 2nd May, 2007, Scotiabank Theatre Vancouver, the
Paramount Chinook and Scotiabank Theatre Edmonto.
On 3rd May, at Scotiabank Theatre Montreal was exclusive
party for SCENE contest winners and VIPs to celebrate the
official launch.
Guests will be able to register for SCENE and start
accumulating points to earn free movies, concession items
and other special offers.

30. Reward Structure

31. Rewards & Benefits
Movie Rewards
Music Rewards
Magazine Rewards
Live Theatres Rewards

33. Any Queries?