Tuesday, February 8, 2011
Super Advertising
In orfer for the VW company not to go bankrupt, they would need to sell about 200 cars. It cost VW $3 million to make/air the commercial. 98.7 million people saw the Superbowl. I think it's smart to show your ad during the superbowl commercial. Although not all 98.7 million will buy your product, a lot of those millions of people will think about getting a VW now. In order for the company to not go bankrupt, they at least need to make the $3 million they spent on the commercial and air time, so they'd need to at least sell 150 cars.
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Your on the right track using specific numbers in your analysis. Show your work though.
ReplyDeleteAlso go into the numbers further. How much does an average VW sell for? How much do you think it costs to manufacture one? The difference is the profit margin. What is that and how many vehicles need to be sold to break even on the commercial cost? List the assumptions you've made.