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Gokul(19), Kritika(25), mohan(29),Swathy(54)

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Chain of theaters across country with variousbrands like Cineplex Odeon

Galaxy Famous Players

Cinema City

65% market share.

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Low Medium High

Young Families(25-35) Retirees 55+ Teens(13-15)

Older Families(36-54) Young Adults(16-19)

Young Working(20-24)

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High adoption rate can be expected amongTeens, Young Adults and Young Working

Would be keen on reward systems and could

redeem it to supplement their expenditure intheater.

Potential to appeal to Retirees also providedproperly communicated

Families may not show much interest

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Aggressive contention for customer box officeretention even after 65% market share Ongoing film piracy

Rental movies Concerts and sorting events

Inconsistent revenue yield per year Variable attendance dependant on movie genre

Weak box office attendance(2005) Sharp drop in Net operating Income

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PARAMETERS

NO PARTNERINTERNALDEVELOPMENT

FLIGHT MILES SCOTIABANK

Costincurred

$5.5mn anddiminishing thereafter

$15 mn + $0.9 /transaction+data access cost

Near about $6.51 mn

Penetration

Rate

16.56% (5.3 mn unique

visitors)

21.87%(7 mn database) 21.25%(6.8 mn customers served)

DataOwnership

Complete None None

Advantages 1.Unlimited dataaccess and control2.Would know onesbrand the best

1.Immediate entrance to data of7 mn people and other FlightMiles partners2.Offer of $250000 by FlightMiles towards marketingcampaign3.Easy reach to large number ofCanadians alreadywidespread awarenessbuilt(exhibit 3)4.No need to carry multiple

cards

1.Leverage on earlier corporatesponsorships2.One of the Big 5 banks in Canada3.Ready to share Cineplexs financialrisk- proposed to share 50-50 cost4.Prior experience with datamanagement companies5.No requirement to open bankaccounts but each debit/credit cardholder issued Cineplex loyalty card.

Dis-advantages

1.Face financial risk ofunredeemed points2.Difficult to divest theprogram3.New department anddatabase required

4.Lenghthy time ofdevelopment

1.Lenghthy commitment of 3yrs2.No easy exit option3.Would lose all access toaccumulated data on exiting4.Extra cost incurred in

accessing database and to issuepoints

1.Naming rights on 3 major theaters2.Exlusitivity agreements on bankmachines in all theaters3.Customers wouldnt like carryingmultiple cards4.Constrained decision making

power5.No access to individual levelbankin information

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Opt for partnership with Scotia bank

Advantages: Cheapest and easiest way for Cineplex to grow its

customer base benefit from dual strategy Financial and data management risks would be shared

No barriers for contractual exits

Modifications:

Execute a single card strategy Equal decision making powers

In long term, aim to gather customer preferences viaadvanced technology at PoS

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In Theater Ads:- Large audience consisting oftheir target group. Cost effective

ONLINE ADS:-To target the young audience(16-24) online advertisements especially onsocial media and on movie based website likeIMDB.

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National Roll out. Better reach

Sharing financial risk

Cost efficient Sizeable increase in revenue

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Pioneers of multiplex concept in India

Pan India presence

Services apart from movies(core benefit)

include Luxury Cinema.

Bulk Cinemas.

E-Booking and Tele Booking.

Parties at PVR. Movie newsletter and vouchers

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Heterogeneous movie tastes.

High variations in ticket price across variousregions.

Multi-linguistic. Government interference.

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Opt for internally developed Loyalty program

Implement in a phased approach (metros first)

Single card approach.

Customize deals and packages based on usage Establish analytics capabilities for the same.

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