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The parametric analysis, to find hope in what level of exposure will increase. )
Abstract:
Super Grain Corporation's vice president, Claire Syverson, to a certain budget,
will be the company's new breakfast cereal ─ Crunchy Start ─ sell to customers,
and how the smallest budget, maximum exposure is the The main core of the
case.
Case Background:
After studying the survey, breakfast cereals market in 2005, the estimated value
of 8.9 billion, and from 2000 to 2005, its annual growth rate of at least 1% or
more. And Claire Syverson order to the company's new breakfast into this
market, selling to customers, and target customer set in the pediatric population,
so the main advertising media in children's viewing of TV programs, or is the food
and family-oriented magazines, and major newspaper Sunday supplement, the
details are as follows:
Medium 1: Television commercials on Saturday morning programs for children.
Medium 2: Advertisements in food and family-oriented magazines.
Medium 3: Advertisements in Sunday supplements of major newspapers.
At present, Super Grain Corporation's total advertising budget of $ 4,000,000, the
total advertising budget plan is $ 1,000,000, the remainder by the advertising
design company, Giacomi & Jackowitz, information provided as follows:
Costs
Each TV Each Each
Cost Category
Commercial Magazine Ad Sunday Ad
Advertising costs $300,000 $150,000 $100,000
Planning costs $ 90,000 $ 30,000 $ 40,000
Expected number
1,300,000 600,000 500,000
of exposures
After, Super Grain want to target customers in both, to achieve the least number
of viewers, the five million people. So Super Grain to study the various
advertising media to watch the expected number, as follows:
Again, Claire Syverson brought strongly believe that the promotional coupon
interest, so she went to study in the media joined the coupons, the redemption of
the coupon the cost, as the table, and their available funds, $ 1,490,000, brought
redemption of these coupons.
We can see from the above, the best combination of advertising media:
5 Television commercials, 0.1860465 Advertisements in magazine,
12.35465 Advertisements in major newspaper.
In addition to this, Row 7 of the dual price quite large, we can see if the increase
in the number of Television commercials should be able to bring considerable
exposure, it is to be analyzed by parametric analysis.
(1) can be seen from above, TV increase in the amount of up to 0.5925926, and
the scope of the following, each additional unit of Television commercials, the
exposure can increase the amount of 1,163,953.
(2) increasing the TV to 5.5926, and the remaining restrictions are the same, get
the optimal solution is:
Global optimal solution found at itera tion: 4
Objective value: 13478700
This still can be seen in Row 7 of the dual price considerably, so we'll try to
increase the TV restrictions.
(3) TV limit is increased to 11.1112 we get:
Global optimal solution found at iteration: 2
Objective value: 14444440
After, Super Grain to study very carefully the number of all advertising media, will
bring the number of sales, as follows:
Table 4: The impact of advertising levels on first-time purchase of Crunchy Start
In this section, in order to simplify the problem, but also added several
assumptions:
4. Did not see the above table does not include sales of advertising and buy
breakfast.
5. The table contains only see ads for the first time to buy breakfast, not included
purchase of a second after the sales.
6. Gross profit for each breakfast, 50 cents.
Therefore, this part is to meet the above constraints, the pursuit of maximum
profit.
Shenkaoziliao:
A theory of marketing principles, Prentice Hall Business Co., Ltd., Taipei, 2004.
Chenshang Yong, Xiao Fufeng, Advertising, Prentice Hall Business Co., Ltd.,
Taipei, 2006.
Liu Jianshun, modern advertising, the cause of John Wiley & Sons Ltd., Taipei,
2004.
Sun and promising, advertising, network resources, http://www.eshunet.com/.
U.S. breakfast cereal market: 2005 Edition, Mintel International Group Ltd,, 2005