Question
Unilever is a company that produces consumer packaged goods. The company wants to launch a new social media campaign and is contemplating between two options.
Unilever is a company that produces consumer packaged goods. The company wants to launch a new social media campaign and is contemplating between two options. The first option is to launch the campaign on Instagram, which will cost them $100,000 and bring in an incremental revenue of $300,000. This campaign is estimated to have a margin of 40%. The second option is to launch the campaign on TikTok, which will cost them $30,000 and bring in an incremental revenue of $120,000. The TikTok campaign is estimated to have a margin of 50%. According to this information, if the company only cares about the ROM(%), which option would they end up choosing?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started