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2/3/13
DECISIONS TO BE TAKEN
2/3/13
TRIGGERS
Variable attendance dependant on movie genre Sharp drop in Net operating Income
Cinema 2/3/13
Value 2/3/13
2/3/13
DEVELOPMENT $5.5mn and diminishing thereafter $15 mn + $0.9 /transaction+ Near about $6.51 mn data access cost
st incurred
netration Rate 16.56% (5.3 mn unique visitors) 21.87%(7 mn database) Complete 1.Unlimited data access and control 2.Would know ones brand the best None
ta Ownership
vantages
1.Immediate entrance to data 1.Leverage on earlier of 7 mn people and other corporate sponsorships Flight Miles partners 2.One of the Big 5 ban 2.Offer of $250000 by Flight in Canada Miles towards marketing 3.Ready to share campaign Cineplexs financial risk 3.Easy reach to large number proposed to share 50-5 of Canadians already cost widespread awareness 4.Prior experience with built(exhibit 3) data management 4.No need to carry multiple companies cards 5.No requirement to op bank accounts but each debit/credit card holder issued Cineplex loyalty card.
advantages
1.Face financial risk of 1.Lenghthy commitment of 3 unredeemed points yrs 2.Difficult to divest the program 2.No easy exit option 3.New department and database 3.Would lose all access to required accumulated data on exiting 2/3/13 4.Lenghthy time of development 4.Extra cost incurred in
1.Naming rights on 3 m theaters 2.Exlusitivity agreemen on bank machines in all theaters 3.Customers wouldnt li
RECOMMENDATION:
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 a single card/cardless strategy
Modifications:
2/3/13 Execute
OPTION 2
OPTION 3
OPTION 4
None incentive 1 time Annual fee of $5 None incentive enough for membership fee of customers might enough for customers to join just $2 very low be deterred from customers to join but still joining questionable None no incentive for customers 10% customers 15% - too high 10% customers tempted to join discount ;costly for tempted to join the company 250 adequate points to tempt customers to join; no incentive yet but motivation exists $62.22 good enough benefits for customers and none too costly for company $32.14 moderate cost for the company
Concession discounts
Sign up points
500 too many 100 too low None customers points;1 free child points; might not not tempted to admission be attractive join enough
$51.77 too high a value for benefits; costly to support for company
$68.37 moderate No benefits no value at 2500 incentive for points but still customer to join prove to be costly
Value per point /Will it be too costly for the 2/3/13 company?
$28.97 lowest $36.56 highest but not justified at but justification no membership questionable fee
RECOMMENDATION:
To target the young Engage in WOM publicity audience (16-24) online in a big way for young advertisements audience. Develop more especially on music promotional campaigns websites like mtv.ca and for universities and more muchmusic.ca as well as in campus offers for Google could be done. special events. Target young working adults too by corporate sponsorships.
Rather than relying on Helpful in targeting the Low advertisement costs Engage in mobile newspaper ads, look out young segment(16-24) per thousand advertisement and for other media . impressions(25 Canadian couponing out for Rather than relying on just traditional advertisement media ,lookto target dollars) young Smartphone more cost effective and non traditional ,mobile and online media that can users. 2/3/13
enhance reach.
Lowest initial investment costs $200000 Vast experience in IT strategy and in developing CRM programs for leading organizations Program proposals
Manage marketing platform and all aspects of e-communications Track members on -going basis through different promotional media
2/3/13
Having partnership with one of Canadas important national bank would help in
Sharing financial risk Boost cost efficiency Increase program coverage via branches
2006s new PoS installation had the technical capability of supporting the 2/3/13 national roll out.
DECISION SNAPSHOT
Opt for partnership with Scotia bank Opt for option 4 in reward program Opt for online, radio and non traditional media to target the youth segment Opt for a national roll out in partnership with Scotia bank.
2/3/13
THANK YOU
2/3/13