flamingo grill advertising campaign linear programming

A discussion of the ranges for the objective function coefficients. A discussion of how the total exposure would change if an additional $10,000 were added to the advertising budget.ģ. Show the total exposure and indicate the total number of potential new customers reached.Ģ. A schedule showing the recommended number of television, radio, and newspaper advertisements and the budget allocation for each medium. Include a discussion of the following items in your report:ġ. HJ agreed to work with these guidelines and provide a recommendation as to how the $279,000 advertising budget should be allocated among television, radio, and newspaper advertising.ĭevelop a model that can be used to determine the advertising budget allocation for the Flamingo Grill. The newspaper budget is to be at least $30,000. The radio advertising budget is restricted to a maximum of $99,000. The television budget should be at least $140,000. Use no more than 20 television advertisements. Use at least twice as many radio advertisements as television advertisements. To balance the advertising campaign and make use of all advertising media, Flamingo's management team also adopted the following guidelines: Because of management's concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. Similarly, for newspaper ads, the preceding data are reliable up to a maximum of 20 the exposure rating declines to 5 and the potential number of new customers reached declines to 800 for additional ads.įlamingo's management team accepted maximizing the total exposure rating across all media as the objective of the advertising campaign. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. For radio ads, the preceding data are reliable up to a maximum of 15 ads. 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. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers.Īt this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the first few ads in each medium. It is a function of such things as image, message recall, visual and audio appeal, and so on. 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 team, HJ consultants provided the following 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:Īdvertising Media Exposure Rating per Ad New Customers per Ad Cost per Ad The management team requested HJ's recommendation 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 and Johnson (HJ). The following information was provided by H&J: Advertising Medium No of Ads Media Exposure Rating New Customers per Ad Cost per Ad TV1 Television 1 ST 10 90 4,000 $ 10,000 TV2 > 10 55 1,500 10,000 RD1 Radio 1 ST 15 25 2,000 3,000 RD2 >15 20 1,200 3,000 NP1 Newspaper 1 ST 20 10 1,000 1,000 NP2 >20 5 800 1,000 The objective of the advertising campaign is to maximize the total exposure rating across all media.The Flamingo Grill is an upscale restaurant located in St. Javier Flamingo Grill - Linear Programming Case OctoIntroduction The Flamingo Grill’s management team hired the advertising firm Haskell & Johnson to recommend the optimal advertising mix of television, radio and newspaper ads given a budget of $279,000.00.

Flamingo grill advertising campaign linear programming