• Presented by:

Akash
Shreya bose
vishnupriya
Nisha
Anushka Singh
GROUP NO 1
Question
 Relax and Enjoy Lake Development Corporation is
developing a lakeside community at a privately owned
lake.Their primary market includes all the middle and
upper income families. Relax and Enjoy Lake
Development Corporation has employed the advertising
firm of Boone, Phillips and Jackson (BP&J) to design the
promotional campaign.
 BP&J have recommended that the first months advertising
be restricted to only 5 media.
 BP&J have collected data on

- Number of Potential Customers Reached

- Cost per advertisement

- Maximum number of times each medium is available

- Exposure quality rating for each 5 media

Advertising Media Alternatives for Relax and Enjoy

Advertising Media Number of Cost per Maximum number Exposure quality

Potential advertisement($) of times each rating units
Customers medium is
Reached available per
month

Daytime TV(1 1000 1500 15 65

min)
Evening TV(30 2000 3000 10 90
sec)
Daily 1500 400 25 40
Newspapers(1/
2 page)
Sunday 2500 1000 4 60
Newspapers(1/
2 page)
Radio 300 100 30 20
 Relax and Enjoy provided BP&J with the advertising budget of
$30,000 for the first month’s campaign. In addition there were
some restrictions.

- At least 10 TV commercials must be used

- At least 50,000 potential customers must be reached

- Not more than $18,000 may be spent on TV Advertisements.

Decision Variable

 The decision to be made is how many times to use each

medium. The decision variables are:

DTV – number of times daytime TV is used

ETV - number of times daytime TV is used

DN - number of times daytime TV is used

SN - number of times daytime TV is used

R - number of times daytime TV is used

Objective Function

 Objective – To maximize the total exposure quality units for the

overall media selection plan.

 Objective Function

Max Z = 65DTV+90ETV+40DN+60SN+20R
Constraints

 Availability of Media

DTV<=15
ETV<=10
DN<=25
SN<= 4
R<=30
 Budget
Advertising budget is not more than $30,000

1500DTV+3000ETV+400DN+1000SN+100R<=30000

 Television Restrictions

DTV+ ETV >=10

1500DTV + 3000ETV <=18,000
 Customers Reached

1000DTV+2000ETV+1500DN+2500SN+300R>=50000