MFP 8 - ASSIGNMENT ABOUT MEDIA PLANNING PDF

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ASSIGNMENT ABOUT MEDIA PLANNING...

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Yasmeen Jarrar MFP 8 1. If San Francisco accounts for 1.24 percent of total U.S. population, and has 1.43 percent of total U.S. laundry detergent sales, what is the CDI for this market? Also, what does this index mean? The convention for CDIs and BDIs is to express them as whole numbers. Use the formulas shown at the beginning of this exercise, and show your math below. % Category of sales in area / % of Population in area x 100 = 1.43 / 1.24 x100 = 115 This index number means Detergent sales in San Francisco are about 15 percent above what would be expected given the population in the area. 2. You are marketing Red Baron frozen pizza, and you are looking for some place to spend $50,000 in surplus advertising budget. You have narrowed the choice down to two markets: Seattle and San Francisco. Calculate the BDI/CDI for both markets. If the surplus can only be spent in one market, based on BDI/CDI ONLY, which market should you choose? Seattle CDI= % Category of sales in area / % of Population in area x 100 = 1.9 / 0.9 x 100 = 211 BDI= % Brand sales in area / % Population in area x 100 = 1.6 / 0.9 x 100 = 177 San Francisco CDI= % Category of sales in area / % of Population in area x 100= 3.0 / 1.7 x 100= 176 BDI= % Brand sales in area / % Population in area x 100 =2.8 / 1.7= 164 Based on these numbers alone, the money should be spent in Seattle. 3. Calculate the BDI and CDI for each market. Chicago BDI= 82 CDI= 95 Grand Rapids BDI= 112 CDI= 69 Green Bay BDI= 89 CDI= 104 Lansing BDI= 147 CDI= 123 Milwaukee BDI= 108 CDI= 94 South Bend BDI= 95 CDI= 133 Traverse City BDI= 255 CDI= 204

4. Name the markets with both high BDI and high CDI and advise your client on the best advertising action in light of your brand, the category, and potential competitive threats. The markets with high BDI and CDI are Traverse City and Lansing. I wouldn’t do any advertising here because the brand does very well in these areas within the category. 5. Name the markets with high BDI and low CDI, and advise your client on the best advertising action in light of your brand, the category, and potential competitive threats. The markets with high BDI and low CDI are Grand Rapids and Milwaukee. Milwaukee does a bit better than Grand Rapids, so I think minimal changes need to be made when it comes to category penetration. In Grand Rapids, I think Cherry Treats needs to market themselves in a different way than the category is currently being marketed. Market research needs to be conducted on what the population does not like about the category. 6. Name the markets with low BDI and high CDI, and advise your client on the best advertising action in light of your brand, the category, and potential competitive threats. These markets would be Green Bay and South Bend. These markets have great opportunity for growth because the category is popular. Brand recognition and consideration needs to be higher. 7. Name the markets with low BDI and low CDI, and advise your client on the best advertising action in light of your brand, the category, and potential competitive threats. The market would be Chicago. Typically, in this scenario, the brand would just exit that specific market, but Chicago contributes to half of Great Lakes’ sales. This should be of utmost importance for Great Lakes to focus on, because there is not only a slightly weak category market, but the brand has a good chance at boosting sales and recognition as well....