Competitive spend analysis sov

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Competitive spend analysis sov

  1. 1. COMPETITIVESPENDING ANALYSIS
  2. 2. Competitive SpendingAnalysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5EXHIBIT I: COPIER CATEGORY EXPENDITURES $(000)Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net RadioCanon Inc 7095.0 1011.2 212.1 4914.2 51.2 763.9Compaq 374.1 545.9Harris Corp 1116.2 124.0 11.6 357.0Konica Corp 2558.8 129.8 11.1 30.3 878.2Matsushita 172.1 4.6Minolta 3902.2 3.3 43.2Mita Co 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8Pitney Bowes 1128.9 0.8 411.1 595.1Ricoh Co 1164.2 1471.9 1265.7 226.4 1345.9Sharp Corp 2862.5 311.0 37.0 3525.7 1189.8 859.0Toshiba Corp 24.6Xerox Corp 37.2 635.6 2.4 547.2 0.71. Five copiers, Canon, Mita, Ricoh, Sharp, and Xerox, are targeted to the same market. UsingExhibit I, fill in media expenditure data and complete this table for the five brands listed.
  3. 3. Competitive Spending Analysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.52. Which of the five copier brands is the biggest media spender - i.e., which hadthe highest total advertising expenditures across all media? Name the brand andgive the total amount below.Canon was the biggest spender, with a little more than 14million in spending ($14,047,600). Dont forget the (000) –correct answers are expressed by adding (000) or thousands.
  4. 4. Competitive Spending Analysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.53. Which brand spent the most ad dollars in cable TV? Name the brand and thetotal amount.Ricoh spent the most in cable TV, at $1,345,900
  5. 5. Competitive Spending Analysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.54. Which brand spent the most ad dollars in Network TV? Name the brand andthe total amount.Canon is the heavy hitter in Network TV with nearly $5MM($4,914,200)
  6. 6. Competitive Spending Analysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.55. Using the figures you copied into the "Big Five" Table, calculate Media Mix(as percentages) for each copier brand. Enter proportions into the tablebelow, rounded to one decimal place.Media Mix for each brand is calculated by dividing the expenditures foreach medium used by the total dollars for the brand.Example Using Ricoh Natl Newspapers:$1471.9 (000) / 5474.1 (000) * 100 = 26.9 (26.88)(Brand Medium Spending / Brand Total Spending) x 100 = Media Mix Percentage
  7. 7. Evaluating Competitive SpendingMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5Media MixMagazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.05. Using the figures you copied into the "Big Five" Table, calculate Media Mix (aspercentages) for each copier brand. Enter proportions into the table below, rounded toone decimal place.Completed table:Percentages, rounded to one decimal place.
  8. 8. Media Mix• Definition: The way media dollars are allocated• Compares spending by media type to the total budget.• What percentage of your budget is spent on “X Media”?• What’s your Media Mix?• Expressed in percentages
  9. 9. Competitive Spending Analysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.56. Again, using the figures in the "Big Five" Table, calculate Share of Voice for eachcopier brand. Enter SOV data into the table below. Round percentages to thenearest tenth.Share of Voice (SOV) is calculated by dividing the expenditures foreach brand by the total for the category.Example Using Ricoh Natl Newspapers:$1471.9 (000) / 4146.0 (000) * 100 = 35.5(Brand medium expenditure / Category medium expenditure) x 100
  10. 10. Competitive Spending Analysis and SOVMagazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5SHARE OF VOICE (SOV)Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.06. Again, using the figures in the "Big Five" Table, calculate Share of Voice for eachcopier brand. Enter SOV data into the table below. Round percentages to the nearesttenth.Completed table:Percentages, rounded to one decimal. Media columns total 100%
  11. 11. SOV (Share of Voice)• Definition: Brand’s percentage of total advertising dollarsspent within a category.• Used in competitive analysis• SOV can be applied to total expenditures or to a particularmedia
  12. 12. Competitive Spending Analysis and SOVMedia MixMagazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.07. The Media Mix table reveals percent of total budget that each brand allocates to eachmedium. In contrast, the Share of Voice table reveals which brands "voice" dominateseach medium, and which brand has less voice in each medium. Be sure to consult thecorrect table for questions below.A) Xerox invested over 95 percent of total budget into two media. Relative to Xeroxsmedia mix, name the two media and their respective percent of total budget.National Newspaper (52.0%) and Network TV (44.7%)
  13. 13. Competitive Spending Analysis and SOVMedia MixMagazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.07. The Media Mix table reveals percent of total budget that each brand allocates to eachmedium. In contrast, the Share of Voice table reveals which brands "voice" dominateseach medium, and which brand has less voice in each medium. Be sure to consult thecorrect table for questions below.A) Xerox invested over 95 percent of total budget into two media. Relative to Xeroxsmedia mix, name the two media and their respective percent of total budget.National Newspaper (52.0%) and Network TV (44.7%)
  14. 14. Competitive Spending Analysis and SOVSHARE OF VOICE (SOV)Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.07. (Cont)B) Whats significant about Xeroxs SOV in these 2 media? Prove this with hard data.Xerox appears anemic in Net TV (4.1% SOV) and Natl Newsp (15.3%SOV)—being the ―low spender‖ or nearly the lowest spender in both.
  15. 15. Competitive Spending Analysis and SOVSHARE OF VOICE (SOV)Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.07. (Cont.)C) Based on this SOV scenario, whats Xeroxs best move? As media director, otherthan raising the budget, what advice would you give Xerox to help fix their problem?Xeroxs voice is little more than a whisper in these two media. They may gainsome voice by changing timing strategy – e.g. - run ads in months/weeks whenothers are on hiatus. Switching to media where there is less "noise" may haveeven more success.
  16. 16. Competitive Spending Analysis and SOVSHARE OF VOICE (SOV)Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.08. Which brand has the highest share of voice in Network TV? Lowest share inNetwork TV? Give the specific shares for each:Canon is highest with 36.5%Xerox is lowest with 4.1%
  17. 17. Competitive Spending Analysis and SOVSHARE OF VOICE (SOV)Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.09. Which brand has the highest share of voice in Magazines? The lowest inMagazines? Give the specific share for each:Canon is highest with 54.6%Xerox is lowest with 0.3%
  18. 18. Competitive Spending Analysis and SOVMedia MixMagazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio TotalCanon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.010. Assume you are marketing director representing a totally new brand in the copymachine category, with a $6 million budget.A) Do you see any opportunities here to use unexploited media? Why or why not usethem?(Answers provided here are not all inclusive)Media least explored by the copier brands are Network Radio, Outdoor, andSpot TV. Network radio was completely ignored except for Mita. Spendingin the other two media, Outdoor and Spot TV, is relatively light comparedwith other categories. There are clear opportunities for competitors to gainSOV in these media or even to dominate SOV. The question arises whetheryour creative message can be effective in these media – its of little value tobe the dominant voice if nobodys listening.
  19. 19. Competitive Spending Analysis and SOV10. Assume you are marketing director representing a totally new brand in the copymachine category, with a $6 million budget.B) Plan your own media strategy. Where would you spend the most, and why?MagazinesPrint offers an excellent media opportunity; most business executives whomake purchase decisions subscribe to B2B (Business to Business) tradepubs. Purchase of a copy machine is a high involvement decision, andbusiness magazines make a perfect fit for copy-heavy ads – ads that allowexecutives to study the details before making a purchase.NewspapersNewspapers are well read by business/managerial people. Its also anexcellent medium to announce news about your product or serviceplan.RadioIf well crafted and highly creative, radio is a very strong medium and isoften used as a supplement to print. It can inexpensively helpmaintain top-of-mind awareness of your brand and also serve as aneffective reminder to take action.

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