EVALUATING THE “READER’S

IMPEX ITCHEN APLIANCES:

OFFER”

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 1. What would be the break-even volumes required to cover the advertising costs under
the Reader's offer based on various options (all editions vs. south editions, one insertion
vs. three insertions, Impex delivery vs. times delivery)? What volumes do you think
ToI offer can achieve?

Exhibit 5: The TIMES OF INDIA advertising rates offer to IMPEX

Exhibit 3: products proposed for THE TIMES OF INDIA reader's offer (one of the
following must be chosen)

Breakeven Volumes (All India Edition)

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 Breakeven Volumes (South India Edition)

2. How would the ToI offer compare with the March 2014 year-end Scheme? Should
Chenengadan opt for Reader's Offer? Why why not? If the reader's offer is opted for, what
mechanisms (editions package, delivery option, number of insertions) should be preferred?
Should it promote multiple (all 3) product in an ad or individually (one product in an ad)?

EXHIBIT 4: sales response for the previous Times of India readers' offer campaigns

Forecasted sales volume

Sales Volume as per TOI is calculated by using the Regression Equation

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 Comparison between TOI offer & 2014 march end sale

If Impex decides to opt for the Reader’s Offer, which option should it choose: single
insertion or three insertions, Impex delivery or the Times of India delivery, all the Times
of India editions or only South Indian Times of India editions?

 Past data suggest at least three ads were required to create desired impact and
response
 Three insertions will give the advantage of future relationship opportunities open
for Impex
 Impex delivery-
1. Fix 10% commission charged by the vendor whereas ToI was charging
between 10% to 20%
 They should go for south India edition because if they go for all ToI addition then
Impex have to provide an after-sale service that would be difficult for the Impex

Should it promote all three products in one ad or promote one product at a time?

 By calculating the revenue of each product, we will choose the ceramic combo
because it is generating the highest Revenue among all product
 An idea behind choosing one product is that we give an idea of how impact ToI
advertisement is working in the market and is it really achieving the
assuming/expected target or not

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