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- 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.
- 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!