Flamingo grill case study7/31/2023 ![]() ![]() For planning purposes, HJ recommended reducing the exposure rating to 55 and the estimate of the potential new customers reached to 1500 for any television ads beyond 10. After 10 ads, the benefit is expected to decline. For television, HJ stated that the exposure rating of 90 and the 4000 new customers reached per ad were reliable for the first 10 television ads. At this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the first few ads in cach medium. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest poten- tial for reaching new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. New Customers Cost per Ad 4000 per Ad Exposure Rating per Ad 90 25 10 Advertising Media Television Radio Newspaper 2000 1000 $10,000 S 3,000 S 1,000 The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. ![]() In a meeting with Flamingo's management toum, HJ consultants provided the follow- ing information about the industry exposure effectiveness rating per ad, their estimate of the number of potential new customers reached per ad, and the cost for each ad. The management team requested Hy's recom- mendation concerning how the advertising budget should be distributed across television, radio, and newspaper advertisements. To help plan an advertising campaign for the coming season, Flamingo's management team hired the advertising firm of Haskell & Johnson (HJ). ![]() Which objective function is a better indicator of please comment (5 points)Ĭase Problem 1 PLANNING AN ADVERTISING CAMPAIGN The Flamingo Grill is an upscale restaurant located in St. (5 points) Compare the optimal solutions from part (b) and part (e). You MUST attach a copy of the solution report. Give the values of each decision variable and the objective function. Use Solver in Microsoft Excel to solve this new model that you developed in parte). After reviewing HJ's recommendation, the Flamingo's management team asked how the optimal solution would change if the objective of the advertising campaign was to maximize the number of potential new customers reached. What do the ranges indicate about how sensitive the recommended solution is to HI's exposure rating coefficients? Explain. Comment on the ranges for the objective function coefficients. How would the total exposure change if an additional $10,000 were added to the advertising budget? Explain. Also indicate the total number of new customers reached. Use Solver in Microsoft Excel to solve the model that you developed in part (a). page for see page 204 of textbook) to answer the following questions: Formulate a linear programming model identify and define decision variables, objective function and constraints) that can be used to determine the advertising budget allocation for the Flamingo Grill in order to maximize the total exposure rating. AutoSave Case Study (Ch 4) LP Home Insert Draw Page Layout Formulas Data > Tell me A % Conditional Formatting Format as Table Cell Styles Clipboard Font Alignment Number Cells G8 x V fe A B с D E F G H T1 T2 R1 R2 N1 N2 TI T2 R1 R2 2 New CustAd 3 Cost/Ad 4 Availability 5 Esp/Ad B 7 DECISION VAR B Ads Placed 9 10 Max Exposure 1 12 Constraints 13 14 NI N2 LHS RHS 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 31 32 33Ī. ![]()
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