This document analyzes Cineplex Entertainment's potential implementation of a loyalty program. It begins with an overview of Cineplex's history and business segments. It then defines the problems, such as inconsistent revenue, and considers whether a loyalty program could help. The document reviews Cineplex's financial performance and customer data to infer that customers would be interested in rewards. It concludes by recommending a regional pilot program with internal development and specific marketing and reward structures.

1. Cineplex
Entertainment: The
Loyalty Program
Analysis by-
Akash PATIL
Bhumit KOTHARI
Case Blazer II

2. Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion

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. 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. Segmentation
Segmentation
Teenagers
Young
Adults
Young
working
Young
families
Older
families
Retirees

6. Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion

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. Sub Problems
 Customer spending & frequency
 Program to launch regionally or nationally?
 Choose loyalty partner
 Marketing communications

9. Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion

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. 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. 1…
2…
17.90%
Gross Income%
2005 2004 2003

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. Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion

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. Contents
 Case Synopsis
 Problem Definition
 Case Inferences
 Case Recommendations
 Conclusion

17. Conclusion
 Loyalty program
 Retain existing customers
 Acquire new customers
 Build relationships
 Create brand advocates

18. Thank you!