MediaLoft New YorkBy William Leung

Introduction

Determine the effectiveness of the television campaign for MediaLoft café

Goran Mancherski

Advertising Effectiveness

Dwyer average polling figures in all zonesPrint ads 6.9% effective over 8 yearsRadio ads 12.4% effective over 5 yearsOther ads 4.1% effective since store

opened in 1990

Current TV ad effectiveness 41.6% in all NYC zones

Why Use TV to Advertise?If we treat Q1 as our

original quarterly budget, when we compare it with Q2, Q3 and Q4, we can see that the increase of net income is absolutely relevant to the effectiveness of advertising. In Q2, we increased $4400 for advertising expenses. As a result, we experienced an increase of $28000 in our net sales. Based on this equation, it is not hard to see why using TV to advertise is effective and has immediate results.

Q1 Q2 Q3 Q4

Net Sales $48,000 $76,000 $64,000 $80,000

ExpensesSalary 13,000 13,000 13,000 13,000Rent 3,500 3,500 3,500 3,500Advertising 3,600 8,000 16,000 20,000Cleansers 1,500 1,500 1,500 1,500Pastries 2,500 2,500 2,500 2,500Milk/Cream 1,000 1,000 1,000 1,000Coffee/Tea 4,250 4,250 4,250 4,250Sweeteners 300 300 300 300Total Expenses 29,650 34,050 42,050 46,050Net Profit $18,350 $41,950 $21,950 $33,950

Advertising Results Q3

Advertising Results Q4

0%

10%

20%

30%

40%

50%

60%

70%

Manhattan Brooklyn Bronx Harlem JacksonHts.

Bushw ick

% Homes

% Effective

Café Budget

From this budget bar graph, we can see that our expenses are increasing; but at the same time, our net sales are also increasing.

$0

$50,000

$100,000

$150,000

Q1 Q2 Q3 Q4

Net Sales Total Expenses

Recommendations

Increase our budget for advertising, so that it can increase the quality of our current advertisements.Search for a famous and reliable advertising company to help produce our advertisements.Select prime time slots in each channel to run our advertisements.