Optimization model for advertisement decision: A case of cooperative dairy

Abstract

The market trend, has a significant change over the years. The market is always fluctuating and industries need to put in continuous effort to sustain their position and dominate competition. For a product line industry it becomes more important to create brand awareness and gain loyalty of their customer to minimize threat of new entrants. Brand awareness also plays a vital role in expansion of the product line and building new customer. Advertisement modes hence are an essential tool that would help an industry to reach out to its existing and potential customers. This paper designs and builds an operational model for media mix determination for cooperative dairy. The recommended advertising plan is determined via optimization technique in order to balance the key issues of size-of-audience reached versus advertising budgets. © IEOM Society International. © IEOM Society International.