Case Study-Cineplex Entertainment The Loyalty Program
After reviewing the case, respond to the following questions:
1. Aside from gaining the CRM benefits, what would Lewthwaite like to achieve with respect to the 5.3 million unique visitors, their 7.5 average annual visits and their spending? Do you agree with segmentation by age and the purported movie-going behavior?
2. How might the reward programs described in case Exhibit 5 affect the movie and event-going behavior of the market segments? At retail value, what is the proposed average value of each reward structure for customer’s dollars spent – approximately 5 percent, 10 percent, 15 percent, or 20 percent of regular prices? Which reward structure would you choose? Why? For the sake of simplicity, ignore any one-time fees or rewards.
3. What is the likely increase in Cineplex Entertainment’s revenue from your proposed incentive program – 0 percent, 5 percent, 10 percent, 15 percent, or 20 percent? What would be the varying financial consequences for Cineplex Entertainment? Would you proceed with the reward program?
4. Would you develop the reward program alone? Would you partner with FlightMiles or partner with Scotiabank? Why?
5. What marketing communications campaign should Lewthwaite employ? What specific spending of her $300,000 would you advise? Should the launch be rolled out regionally or nationally.
Upload response in(4-5 pages, double-spaced minimum) to these questions