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#Flamingo grill advertising campaign linear programming how to#
#Flamingo grill advertising campaign linear programming tv#

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. Flamingo’s management team accepted maximizing the total exposure rating, across all media, as the objective of the advertising campaign. 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. 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. At 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. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers. 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. 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 & Johnson (HJ). Max 90T1 + 55T2 + 25R1 + 20R2 + 10 O1 + 5 O2 3.Case Problem 1 PLANNING AN ADVERTISING CAMPAIGN The Flamingo Grill is an upscale restaurant located in St.

Objective Function: – To maximize the total exposure rating across all media.

#Flamingo grill advertising campaign linear programming tv#

Decision Variables T1: Number of TV advertisements with rating of new customers T2: Number of TV advertisements with rating of new customers R1: Number of Radio advertisements with rating of new customers R2: Number of Radio advertisements with rating of new customers O1: Number of Newspaper advertisements with rating of new customers O2: Number of Newspaper advertisements with rating of 5 and 800 new customers 2. Linear Programming Models Model 1 Maximizing Exposure Rating 1.

Use at least twice as many radio advertisements as TV advertisements.Flamingo Grill’s advertising campaign must meet the following criteria: Advertising Media Exposure Rating per Ad NEw Customers per Ad Cost per Ad Televis$10,000 Ra$3,000 Newspa$1,000 Advertising Media Television first 10 ads Television beyond 10 ads benefit will decline, Radio first 15 ad Radio beyond 15 benefit will decline ads Newspaper first 20 ads Newspaper beyond 20 ads benefit will decline. The Table below shows Advertising Media, Exposure Rating Per Ad, New Customers Per Ad and Cost Per Ad.

#Flamingo grill advertising campaign linear programming how to#

Advertising Campaign Summary The Flamingo Grill is an upscale restaurant located in St Petersburg, Florida and it has requested Haskell & Johnson (HJ) recommendation concerning on how to distribute the advertising budget of $279,000 across the following advertising media television, radio, newspaper.