Cineplex Loyalty Program

Assignment On Cineplex Loyalty Program Submitted by Dated Cineplex Loyalty Program Scenario The current scenario is that the CEO of Cineplex Entertainment has approached marketing director Sarah and purposed of the meeting is loyalty program and its development. By this aspect, the core purpose of the company is to stabilize its revenue. In this aspect, Sarah is expected to come up with recommendations, which require addressing the promotional campaign, reward structure by considering the budget constraints. Then it is to be decided, whether this program should be launched regionally or nationally. To evaluate and understand the level of success of the loyalty program, in regional or national market, I have decided to use situational analysis, in which I propose to go through 4Ps and 5Cs. 5Cs Company Cineplex entertainment was found in the year of 1979, but at the time, it was merely a small chain of movie theaters. Later, it merged with Galaxy entertainment and became Cineplex Galaxy. If we analyze the situation of the company, we would find that company has been enjoying top status in Canada. The Cineplex holds around 65% box office’s market shares, which reflect the good image of the Cineplex in Canadian market. However, the film industry revenue is inconsistent, but the CEO Ellis Jacob wanted to stabilize the company revenue by launching a loyalty program. Collaborators To get support for the loyalty program, Alpha, the company, is working as a collaborator as it designs loyalty programs, helps organizations to build customer relationship and forge strategies to maximize profit. Alpha technology has been using array of designs, to track the customer behavior. They are also assisting the company to identify the potential target websites. This group keeps the content relevant, updated, and maintains security and navigation. Kappa, being a data managing company, has been working in alliance with the company as one of the largest global marketing agencies. Gamma also helps the Cineplex to track members through different promotional mediums including web advertisements etc. Estimated cost of Alpha is around $500,000 to$ 100, 00 for Kappa, Gamma estimated cost for planning, and designing loyalty programs is around $200, 00. Therefore, by considering the proposal, company would go with the Gamma. Competitors According to the report there are mainly three competitors of Cineplex, but Cineplex has 65% market share, therefore, the company has no danger from its competitors as it is all in all in movie industry. It is because it is a large company and has huge capital as compare to its competitors. Customers Theater is one of the most popular modes of entertainment in Canada, since 1930. Therefore, the company has potential target market. However, the targeted customers would be based on the entire movie watcher within Canada which in which the young adults, teenager and young workers are high frequency customers whereas the young families, older families and retires are low frequency customers. Climate For the loyalty program, the prospects are very bright for Cineplex, as most of the Canadians are movie lovers and they visit theater frequently. The economy of the country is also stable and the people earn good. Therefore, to visit theater is not a big deal for them. If we analyze the research results we find that, the Cineplex has high prospects to launch loyalty program. 4Ps Product/Service Cineplex, being one of the biggest movie exhibitors in Canada, is launching loyalty program to increase its revenue, by the means of attracting customers towards the company services. Moreover, by offering them incentives, which include discounts or points, which a customer can collect for, merchandise when a customer will allow the company to get his data about the customer is buying habits. Therefore, the core purpose of the company is to collect its user’s information so that they could use the data to modify their programs to enhance the customer loyalty. Price Company has to invest for the incentives which company has promised to offer in return of customer’s information. Price will also be required to hire more employees to manage the loyalty program. Moreover, the company needs to advertise its campaign which required budget. However, in return of this investment, company is expected to collected customers information. Promotion For the promotion of the loyalty program, Cineplex has proposed to offer incentives to the users, in return it would be able to gather data, which would be used to improve the performance of company. If we evaluate the purpose of the loyalty program, we would find that loyalty program itself is being used to promote and advertise company. The aim of the company is to provide better experience at Cineplex. Cineplex marketing department has proposed to promulgate about this campaign, through theater, newspaper advertisements, radio advertisements and online advertisements. Place According to the research, it has been found that the Cineplex is enjoying 65% market shares in Canada. Its services include sports events, rental movies etc. Therefore, Cineplex has earned good name in the national market. However, it is to be decided whether the campaign should be launched on the national level or regional. In this regard, I would suggest to first launch this program on a regional level and after analyzing the success of the program, it could be launched on national level. It is because to test this program at regional level, it would be helpful for the company to evaluate the response of the strategy to attract the customers. It will also require fewer costs to start the program at regional level.

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Category Business-to-Business Marketing
Paper Type APA
Reference Type Assignment
Words 916

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