Day 247 - 10 May 96 - Page 34


     
     1
     2   Q.   So that is 70 per cent of all the spending of people in
     3        your industry on television?
     4        A.  In the industry, yes, of our competitors. .
     5
     6   Q.   So you add all your competitors together?
     7        A.  The point I am making is there may be people in the
     8        fish and chip shop business, for example, who are in the
     9        industry but they are not advertising, so it is of the ones
    10        who actually advertise.
    11
    12   Q.   But you put all those together?
    13        A.  Yes.
    14
    15   Q.   And then if they spend 10 million together, you would
    16        expect to be spending 7 million; is that what you mean?
    17        A.  If the total was 10, at that point in time I would have
    18        thought we spent 70 per cent of the total, yes.
    19
    20   Q.   So the 10 million includes you as well?
    21        A.  Yes.
    22
    23   MS. STEEL:  If I just ask:  Do you know if it is actually done
    24        by amount spent?  I do not know whether you would you
    25        actually know what your competitors were spending?  Would
    26        it not be more likely that it is done by the amount of air
    27        time or something like that?
    28        A.  It is done on many bases.  This "share of voice" to my
    29        recollection is done as a percentage of money we spend out
    30        of the total spent by those in our industry who advertise.
    31        It is not done by us necessarily, although we will have
    32        some knowledge of what is out there, but ad agencies and
    33        third parties with today's world have a pretty good idea
    34        what people are spending for their media.
    35
    36   Q.   Right.
    37        A.  You asked the question earlier:  Are they the same
    38        today?  I think they are lower.
    39
    40   Q.   Right, but at that stage for every £100 million spent on
    41        radio advertising by fast-food outlets, or the eating out
    42        market, you were spending £95 million?
    43        A.  The numbers are not like that for radio.  They are very
    44        tiny but 95 per cent of what was spent on radio by people
    45        in the quick service restaurant industry was spent by
    46        ourselves.
    47
    48   Q.   Right OK, that is millions.
    49        A.  We want to keep in mind this was the UK company.
    50 
    51   Q.   Yes.  Maybe we ought to refer to it, seeing as you talked 
    52        about who that is comparing with. 
    53
    54        On page 8, the third paragraph, it says "Understand our
    55        Competition":
    56
    57        "'The Total Eating Out Market' gives the broadest
    58        competitive context and includes all restaurants, hotels
    59        pubs and any other outlet at which people eat out.  This is
    60        a very broad base so as to give a more focused picture we

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