Essay on Flamingo Grill

674 Words Mar 25th, 2011 3 Pages
Case Problem 1 Planning An Advertising Campaign

The 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 ad­vertising firm of Haskell & Johnson (HJ). The management team requested HJ's recom­mendation concerning how the advertising budget should be distributed across television, radio, and newspaper 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.
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Flamingo'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, Flamingo's management team also adopted the follow­ing guidelines.

· Use at least twice as many radio advertisements as television advertisements.
· Use no more than 20 television advertisements.
· The television budget should be at least $140,000.
· The radio advertising budget is restricted to a maximum of $99,000.
· The newspaper budget is to be at least $30,000.

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.

Managerial Report
Develop a model that can be used to determine the advertising budget allocation for the Flamingo Grill. Include a discussion of the following in your report.

1. A schedule showing the recommended number of television, radio, and newspaper advertisements and the budget allocation for each media. Show the total exposure and indicate the total number of potential new customers reached.
2. How would the total exposure change if an additional

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