Professional Documents
Culture Documents
“Quantitative Methods”
Taught by
SUBMITTED BY
Registration No Name
FX23002 AJITH V
Executive Summary:
Plum is a new age insure-tech company. We’re currently in the transition from a 0 to 1 start-up. We
act as brokers to help small and medium businesses to get affordable group health insurance
plans for their employees. The idea is to help the companies get the necessary support for their
employees during times of crisis. At the current rate of medical inflation, a surgery that would cost
about 5 lakhs now will cost 40 lakhs in 10 years. To beat this and keep the people covered with a
comprehensive policy and touch 10 million lives is our vision. The insurance industry is the most
under-penetrated segment in the Indian business industry. The potential for this market is huge.
The covid pandemic had raised the alarms in the industry which has created awareness among
people. We’re changing the landscape of the insurance industry as we know it.
Problem Statement:
Plum currently has marketing team of 6 people doing only organic marketing to create a inbound
lead funnel for their business.. Each marketer brings 20 leads per month. Irrespective of the
number of leads generated, each marketer is paid Rs.80,000. The 4 types of leads that flow in are
enterprise, mid-market, small business and long tail accounts. For every 100 leads generated these
are the respective numbers of leads for each bucket and its conversion and revenue. The
conversion is enterprise will always be low as we are primarily focusing on small businesses and
mid-market. We are planning to run google and twitter ads. Cost is given below. Develop a project
plan to maximise the revenue with the following constraints
Lead type Leads per 100 Conversion rate Revenue per deal
Google Ad 24000
Twitter Ad 600
Model Structure:
The above organization wants to move add targeted ads to their revenue generation models to
bring in more leads. We need to identify how many targeted ads we have to run within given
constraints while maximising the profit.
Decision variables:
1. Number of ads
Objective function:
1. To maximise profit
Constraints:
Step 1:
We choose the objective function to set it for maximising revenue.The below image shows setting
objective function.
Step 2:
Here we are choosing the decision variable to be number of ads to identify the necessary leads to
be generated.
Step 3:
Here we choose the constraints and then run the solver by keeping in Simplex LP and constraints
as given.
Inference:
We need to run 6 google ads and 66 twitter ads to arrive at the expected revenue within the
budget in hand. However I have not arrived at the question in a right way since mid-market count
is too high which is not what I see in our organization.
Solution:
The total number of ads to run in both mediums is 72. The spend we have to do is Rs.3,99,600.
Running ads to increase the lead flow will allow the marketers to work on other things.