Dinh’s Donuts (B): Crafting Advertising Strategy

In this case, a follow-up to "Dinh's Donuts (A): Optimizing Advertising Reach" (UVA-BC-0302), Serena Lopez, an advertising executive at Dinh’s Donuts, must determine how to allocate the donut chain’s advertising budget to promote a new product, the Minty Cacao Dream donut. Through a cluster analysis, Lopez and her team have identified seven customer segments based on consumers’ media behavior. The analysis divides customers based on the amount of time they spend on ad-free, ad-supported, and hybrid media, and specifies the type of media that they typically consume. Lopez and her team must also consider how demographic data, such as age, income, and education, might impact their decision. They must assess the customer data to identify their target audience, and then determine which media forms to use to reach their desired customer base.