flamingo grill linearing programming.docx - Case Study#4...

This preview shows page 1 - 2 out of 4 pages.

Module B – Linear Programming Applications inOperations ManagementCase Study #4: Planning an Advertising CampaignThe Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo’s management team hired the advertisingfirm of Haskell and Johnson (HJ). The management team requested HJ’s recommendation concerning how the advertising budget should be distributed across television, radio, and internet advertisements. The budget has been set at $279,000.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:AdvertisingMediaExposureRating per AdNew Customersper AdCost per AdTelevision904,000$10,000Radio252,000$3,000Internet101,000$1,000The exposure rating is viewed as a measure of the value of the ad to both existing customers andpotential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture