Question: LP Case Problem The Pandan Leaves is an upscale restaurant located in Kuala Lumpur. To help plan an advertising campaign, Pandan's management team hired the

LP Case Problem The Pandan Leaves is an upscale restaurant located in Kuala Lumpur. To help plan an advertising campaign, Pandan's management team hired the advertising firm of Danial & Partners (DP). The management team requested DP's recommendation concerning how the advertising budget should be distributed across television, radio, and newspaper advertisements. The budget has been set at RM279,000. In a meeting with Pandan's management team, DP 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. Advertising Media Exposure rating per Ad New customers per Ad Cost per Ad, RM Television 90 4000 10000 Radio 25 2000 3000 Newspaper 10 1000 1000 The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential 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. Pandan's management team accepted maximizing the total exposure rating, across all media, as the objective of the advertising campaign. Because of management's concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, Pandan's management team also adopted the following guidelines. Use at least 5 radio advertisement. . Use no more than 20 television advertisements. . The television budget should be at least RM140,000. The radio advertising budget is restricted to a maximum of RM99,000. The newspaper budget is to be at least RM30,000. DP agreed to work with these guidelines and provide a recommendation as to how the RM279,000 advertising budget should be allocated among television, radio, and newspaper advertising. Formulate a mathematical model for the company Use QM for Windows to generate your solution
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