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.
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
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%
