Cineplex Entertainment - Loyalty Programs Essay

5563 Words Mar 9th, 2013 23 Pages



Renée Zatzman wrote this case under the supervision of Professor Kenneth G. Hardy solely to provide material for class discussion.
The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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Additionally, RPG fluctuated based on the film genre. Cineplex executives knew that audiences for actionthemed and children’s movies purchased a high volume of concession items, which typically resulted in a higher RPG than dramas. From these viewing patterns, Cineplex executives were able to distinguish the groups of customers that were particularly valuable. However, with no actual link to individual customers, they faced challenges targeting customers for specific movies and special events. Although market research was helpful on an aggregate level, Cineplex executives wanted to link box-office and concession purchases to a particular customer. Senior executives were supportive of Lewthwaite and the committee collecting this information through a customer relationship management program.

The first Canadian film screening took place in 1896, in Montreal, Quebec, and the earliest cinema opened in 1906.2 Attending the cinemas, also known as theaters, became a popular social activity; by the 1930s, a variety of independent and studio-owned theaters competed for customer attention. In 1979, Canada’s first
18-theater multiplex opened in Toronto, Ontario, with several other multiplexes following in subsequent years. After a series of consolidations, by 2005, only three major theater companies existed in the Canadian movie and event exhibition market.
To showcase films, theaters required licensing from distributors who purchased

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