Question 2. You are given the following data by Ecosneak: Their annual promotional budget (of €300,000) • The cost of ea
Posted: Wed May 04, 2022 4:21 pm
Question 2. You are given the following data by Ecosneak:
Their annual promotional budget (of €300,000)
• The cost of each Billboard advert (€2,000) and the cost of each Magazine advert (€5,000);
• The estimated ‘reach’ of each Billboard advert (20% of the men’s and women’s total market in 2022) and each Magazine advert (45% of the men’s and women’s market in 2022);
• There is a signed contract with World of Sports that Ecosneak will place at least 30 adverts per year in the Magazine;
• There is a limit of 100 on the number of dedicated Billboard spaces available in Edinburgh for Ecosneak to use:
• Q.1 Use this information to formulate Ecosneak’s promotional campaign as a linear programming problem but do not solve it.
• Q.2 Use the information given in the case study to undertake a scenario analysis of first-year profits in the kid’s market. Set up the profit ‘model’ and use this to calculate ‘base-case’, ‘worst-case’, and ‘best-case’ scenarios for first-year profit.
• Q.3 Explain to Ecosneak management the value and limitations of using scenario analysis as a decision-making technique
Their annual promotional budget (of €300,000)
• The cost of each Billboard advert (€2,000) and the cost of each Magazine advert (€5,000);
• The estimated ‘reach’ of each Billboard advert (20% of the men’s and women’s total market in 2022) and each Magazine advert (45% of the men’s and women’s market in 2022);
• There is a signed contract with World of Sports that Ecosneak will place at least 30 adverts per year in the Magazine;
• There is a limit of 100 on the number of dedicated Billboard spaces available in Edinburgh for Ecosneak to use:
• Q.1 Use this information to formulate Ecosneak’s promotional campaign as a linear programming problem but do not solve it.
• Q.2 Use the information given in the case study to undertake a scenario analysis of first-year profits in the kid’s market. Set up the profit ‘model’ and use this to calculate ‘base-case’, ‘worst-case’, and ‘best-case’ scenarios for first-year profit.
• Q.3 Explain to Ecosneak management the value and limitations of using scenario analysis as a decision-making technique