Cineplex Entertainment (Cineplex) was founded in 1979 under the name of Cineplex Odeon as the series of movie theaters. Later Cineplex merged with Galaxy Entertainment and took over by the CEO of Galaxy Entertainment, Ellis Jacob in 2003. Before becoming Cineplex Entertainment, Cineplex Galaxy obtained its biggest competitor, Famous Players in late 2005 and it became Canada’s largest film exhibitor. This series of theaters had approximately 40 million visits per year with the market share of 64 per cents. Cineplex focused on the additional services for customers and customers were able to eat at many counters or play in the arcade. In 2005, Cineplex started focusing on the development of new markets with the use of theaters’ large screens to show live events for example wrestling matches, hockey games and …show more content…
After following the achievement of Famous Players in 2005, Cineplex made some changes in the pricing and food products in 2006. In the result of change, Cineplex increased its regular RPG to $7.73 and its average concession RPG to $3.44. As entire industry was facing variable attendance levels, Cineplex was also challenged by variable levels depending on the new crop of movies. Moreover, RPG was fluctuating depending on the movie type. Cineplex executives analyzed that the concession items were purchased in high volume by the audience of action themed and children’s based movies and the result rate of these movie types was higher than the RPG of drama movies. With the help of the results, Cineplex executives were able to differentiate the valuable group of customers. Cineplex was not individually attached to the customers and it was being challenging for Cineplex to target consumers for specific movies and special events. It became the mission of Cineplex executives to link box-office and concession purchases to a specific customer to create