Gardenburger ExerciseObjectives
ProblemGardenburger is planning to spend $14 million in a five-week blitz of which $1.5 is for the Seinfeld commercial (total for year = about $20 million). Read the account (Wall Street Journal, April 1998) of this situation. Assume that you work for an independent ad agency that was asked to review the media plan. Recommend what you would do in this situation. They are particularly interested in what the total ad budget should be, how it should be allocated across media, and also whether they should go ahead with the Seinfeld commercial. Back up your recommendations with analyses, and describe the process that you used. Proposed ad budget from each teamAll groups should simultaneously post proposed budget on the board. Previous advertisingEstimate of total expenditures should be posted on the board. What did you do?
*Individual estimates first then combine (Use the Delphi program on AdPrin.com) Typical practice
Elasticity methodPresent your proposed budget from
Find estimates of elasticity? Title - Gardenburgers - 0:29 Watch the commercial. *Sethuraman and Tellis (1991), Tellis (2009)
Decomposition method
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