RECOMMENDATIONS:

OPTING THE MOST BENEFICIAL LOYALTY PARTNER:

We suggest that Cineplex choose the Internally Develop the Loyalty Program option
because it will allow them access to and control over the whole programme while not
jeopardising the brand's reputation. In terms of data access, it's possible that retail sales
transaction data won't be of much benefit in deciding customer theatre preferences. As a
result, even though it takes some time, building their own database will be more beneficial to
their goal. Cineplex would pay a substantial amount of $5,00,000 in the first year, but this
will decrease in future years, and they have a net positive income of about $12 million, even
after paying significant interest, so they can undoubtedly afford the software.

REWARD SYSTEM TO FIT THE PURPOSE:

"Option 4" is the one we recommend due to the following reason (the table shows our
analysis):
 For the business, there is a moderate expense.
 Customers would find it appealing.
 There is no one-time membership fee.
 A reasonable number of sign-up points (250) – no reward at this time, but
allows customers to gain more points.
 Concessions receive a permanent discount.
 Increase Cineplex's share-of-wallet.

Parameter Option 1 Option 2 Option 3 Option 4

Membership No One time $2 Annually $5 No
fee
Permanent None–no 10%– this will 15% - high cost 10%– this will
concessions
incentive for tempt customers will be incurred tempt customers
discount
customers to join as the discount to join
is too high
Points Yes Yes No Yes
Sign-up points 500 – too many 100 – too low None – 250 – enough
points;1 child points; might customers not points to entice
admission not be appealing tempted to join customers to
 enough join; While
there is no
current
incentive,
motivation does
exist.
Points per 100 100 - 100
adult movie
transaction
Points per - 75 - -
concession
Combo
transaction
Benefits on (8.50 + 12.37 + (10.95 + 19.95 Nil (10.95+ 23.32+
reaching 10.95 + 19.95) + 37.47) $68.37 No benefits – 27.95) $62.22
highest point $51.77 on on reaching on reaching
no incentive for
reaching 1500 2500 points 2000 points
points customer to join
At 2500 points, Customers will
Benefits are
it has a be satisfied with
overvalued, and
moderate the benefits, and
it is expensive
benefit, but it the business
to sustain the
can still be will not be
business.
expensive. overburdened.
Benefit per 3.45=51.77/15 2.73=68.37/25 0 3.11=62.22/20
movie
transaction
Cost to (1500/51.77) = (2500/68.37) = 0 – no cost at all (2000/62.22) =
company per $28.97 – lowest $36.56 – but no customer $32.14 –
point but not highest earned as well moderate cost
reasonable at no for the company
membership fee

Database Vendor Decision:

Chose Gamma as database vendor as:
 It is easy to track the members that have joined the loyalty programs on an ongoing
basis via different promotions.
 Price is more reasonable compared to other vendors. Offers fixed-price, fixed time
model.
LAUNCH PLAN:
Since both of these outlets have enough customers in the target market, utilising all
advertising channels such as social media, newspapers, in-theater, and radio. Targeting
regional newspapers would be ideal, but it would require precise timing and high execution
and innovative costs. It will also be crucial to make the most of the grass-roots initiative, such
as partnering with college festivals, setting up games stalls, and educating participants about
the programme at an early stage. A nationwide launch would be preferable because it would
ensure consistency in the process and ensure that any customers who desired loyalty benefits
would not be isolated. Over there, there will be no inconsistencies in implementation.