Instructions:

Given below is a case study for which you need to share your thought process as if you are the Consultant to the client. Please
keep your answers short and precise, wherever possible please depict diagrammatically.

Case:

1. Client: A large Cineplex “XYZ Pictures Inc.”, operates one of the most modern and fully digitized motion picture theatre
circuits. It operates over 100 functional theatres.

2. Business Scenario: With state of the art infrastructure and facilities, XYZ Pictures, one of the most successful multiplexes is
suddenly grappling with weak box-office attendance. To cater to the slowdown, they adjusted pricing in tickets and introduced
food and beverage concessions. However, it did not help much in stabilizing the inconsistent revenues.

The marketing director for XYZ Pictures Inc. is trying to decide whether or not to proceed with a loyalty program that would
provide incentives for customers in the form of XYZ loyalty points for their spends. The idea being that customers can collect
these points and redeem them back to see more movies and spend more on concessions.

XYZ Pictures Inc has 3 different SBUs

a. Box office Ticket Sales

b. Concession Sales
c. Online Ticket sales

The customer would be able to collect points whenever they make a purchase from any of these SBUs and could also redeem
these points at these SBUS.

Question 1

Provide your thought on how the financial settlement of these points would happen between these SBUs?

Case Continued...

“XYZ Pictures Inc.” has agreed to contract with your organisation as a Product Vendor. Below are few details envisaged for the
program:

Customer Loyalty Program Details:

2. Customers are entitled to a free membership of the XYZ program by a one- time purchase of €100 worth of tickets or by
paying a one-time fee of €5. They are presented with a membership card which has a unique membership number pre-
printed on it.
3. A customer once enrolled in to the program (is referred as a member), can collect points on purchases by presenting their
membership card at the cinema.
4. There are 3 membership levels (or tiers) in the program
a. Blue Tier (entry level for all members)- For every purchase of €1, 1 point is awarded.
b. Gold Tier (customer reaches this level on crossing a purchase of €500 in a year) - For every purchase of €1, 2
points are awarded to a Gold member.
c. Platinum Tier (customer reaches this level on crossing a purchase of €1500 in a year) - For every purchase of
€1, 3 points are awarded.
5. The customer is evaluated for retaining their tier on a yearly basis. If the customer doesn’t accumulate the points of their
current tier between their upgrade date and one year from the time they are upgraded; then they get downgraded to the
tier basis their point level.

1|P a g e For Internal Use Only Case Study Assessment

6. Customer can redeem the points at any of the SBUs by presenting their membership card. The points would be treated as
good as cash where 1 point = € 0.05. Customer needs to redeem a min. of 100 points.
7. The validity of the points is 1 year from the month of accrual, so points accrued in Jan’18 will expire at the end of Jan’19.

During the above program implementation, the client has decided that they would like to add a new option in the program by
allowing members to convert their points in to XYZ airline miles and vice-versa.
The customer should be able to convert their points in to the airline miles (and vice- versa) by using the XYZ Picture member
website.

Question 2

Your product doesn’t have a tiering feature, so do write down user stories for adding a tier management feature (covering at
least the client’s requirements) that would need to be built for a Standard Loyalty Software Product.

Question 3

Create a Use case and activity diagram for the Point conversion process that you would devise for your loyalty product.

Question 4

Detail out any questions / clarifications/ assumptions that you may have

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2|P a g e For Internal Use Only Case Study Assessment