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
