QUESTION

# Case Study: Linear Prograimning' PLANNING A DIGITAL MARKETING STRATEGY Sunrise Grill is an upscale restaurant located in Key Largo, Florida. The...

KK agreed to work with these guidelines and provide a recommendation as to how the \$350,000 advertising budget should be allocated among the choices. Develop a linear programming model that can be used to determine the advertising budget allocation for the Sunrise Grill. (HINT: you should define two variables for each media option (eg. S1 = number of SiriusXM advertisements with rating of 100 and 4000 new customers and S2 = number of SiriusXM advertisements with rating of 65 and 1500 new customers, and so on). Enter the problem into Excel and use Solver to solve for the optimal solution.

In addition to the Excel file, also prepare an executive summary managerial report. The Executive Summary should be approximately 2 pages (plus Excel file) and include the following sections:

1. (20 points) Case Synopsis (include a brief summary of the case and the business issue(s)being studied)

2. (20 points) Methodology (including a discussion of what information was provided and how you used this information to analyze the problem) organize the available data and type out your full mathematical programming model including defining your decision variables.

3. (40 points) Findings and Conclusions (include summary of analysis results) Based on your analysis, what is Sunrise Grill's (complete) optimal marketing decision?

A schedule showing the recommended number of SiriusXM, Social Media, and Internet Radio advertisements and the budget allocation for each medium. Show the total exposure rate and indicate the total number of potential new customers reached.

Also address the following two questions:

a. How would the total exposure change if an additional \$20,000 were added to the advertising budget?

b. After reviewing KK's recommendation, the Sunrise Grill management team asked how the recommendation would change if the objective of the advertising campaign was to maximize the number of potential new customers reached. Develop the media schedule under this objective. Show the total exposure and indicate the total number of potential new customers reached.

4. (20 points + up to 10 points extra credit) Recommendations. What other factors need to be considered in making the recommendations? Do you agree with the decisions from your quantitative analysis? Why or why not? Using both of these recommendations you made in the findings and conclusions section and your own management perspective (other issues to consider), what is your recommendation for the Sunrise Grill's advertising campaign?. For extra credit, you can also do some outside research on Digital Marketing campaigns and/or base your opinion on your knowledge and/or experience with Digital Marketing (be sure to site any outside sources used).