Competitive spend analysis sov

Competitive SpendingAnalysis and SOV
Magazine Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio Total
Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
EXHIBIT I: COPIER CATEGORY EXPENDITURES $(000)
Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio
Canon Inc 7095.0 1011.2 212.1 4914.2 51.2 763.9
Compaq 374.1 545.9
Harris Corp 1116.2 124.0 11.6 357.0
Konica Corp 2558.8 129.8 11.1 30.3 878.2
Matsushita 172.1 4.6
Minolta 3902.2 3.3 43.2
Mita Co 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8
Pitney Bowes 1128.9 0.8 411.1 595.1
Ricoh Co 1164.2 1471.9 1265.7 226.4 1345.9
Sharp Corp 2862.5 311.0 37.0 3525.7 1189.8 859.0
Toshiba Corp 24.6
Xerox Corp 37.2 635.6 2.4 547.2 0.7
1. Five copiers, Canon, Mita, Ricoh, Sharp, and Xerox, are targeted to the same market. Using
Exhibit I, fill in media expenditure data and complete this table for the five brands listed.

Competitive Spending Analysis and SOV
Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
2. Which of the five copier brands is the biggest media spender - i.e., which had
the highest total advertising expenditures across all media? Name the brand and
give the total amount below.
Canon was the biggest spender, with a little more than 14
million in spending ($14,047,600). Don't forget the (000) –
correct answers are expressed by adding (000) or thousands.

Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
3. Which brand spent the most ad dollars in cable TV? Name the brand and the
total amount.
Ricoh spent the most in cable TV, at $1,345,900

Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
4. Which brand spent the most ad dollars in Network TV? Name the brand and
the total amount.
Canon is the heavy hitter in Network TV with nearly $5MM
($4,914,200)

Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
5. Using the figures you copied into the "Big Five" Table, calculate Media Mix
(as percentages) for each copier brand. Enter proportions into the table
below, rounded to one decimal place.
Media Mix for each brand is calculated by dividing the expenditures for
each 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

Evaluating Competitive Spending
Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
Media Mix
Magazines Natl Nwsp Outdoor Net TV Spot TV Cable TV Net Radio Total
Canon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0
Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0
Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0
Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0
Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.0
5. Using the figures you copied into the "Big Five" Table, calculate Media Mix (as
percentages) for each copier brand. Enter proportions into the table below, rounded to
one decimal place.
Completed table:
Percentages, rounded to one decimal place.

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

Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
6. Again, using the figures in the "Big Five" Table, calculate Share of Voice for each
copier brand. Enter SOV data into the table below. Round percentages to the
nearest tenth.
Share of Voice (SOV) is calculated by dividing the expenditures for
each 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

Canon 7095.0 1011.2 212.1 4914.2 51.2 763.9 0.0 14047.6
Mita 1829.2 716.3 506.6 3222.7 134.0 405.1 778.8 7592.7
Ricoh 1164.2 1471.9 0.0 1265.7 226.4 1345.9 0.0 5474.1
Sharp 2862.5 311.0 37.0 3525.7 1189.8 859.0 0.0 8785.0
Xerox 37.2 635.6 2.4 547.2 0.7 0.0 0.0 1223.1
TOTAL 12988.1 4146.0 758.1 13475.5 1602.1 3373.9 778.8 37122.5
SHARE OF VOICE (SOV)
Canon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8
Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5
Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7
Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7
Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
6. Again, using the figures in the "Big Five" Table, calculate Share of Voice for each
copier brand. Enter SOV data into the table below. Round percentages to the nearest
tenth.
Completed table:
Percentages, rounded to one decimal. Media columns total 100%

SOV (Share of Voice)
• Definition: Brand’s percentage of total advertising dollars
spent within a category.
• Used in competitive analysis
• SOV can be applied to total expenditures or to a particular
media

Media Mix
Canon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0
Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0
Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0
Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0
Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.0
7. The Media Mix table reveals percent of total budget that each brand allocates to each
medium. In contrast, the Share of Voice table reveals which brand's "voice" dominates
each medium, and which brand has less voice in each medium. Be sure to consult the
correct table for questions below.
A) Xerox invested over 95 percent of total budget into two media. Relative to Xerox's
media mix, name the two media and their respective percent of total budget.
National Newspaper (52.0%) and Network TV (44.7%)

Canon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8
Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5
Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7
Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7
Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
7. (Cont)
B) What's significant about Xerox's 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.

Canon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8
Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5
Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7
Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7
Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
7. (Cont.)
C) Based on this SOV scenario, what's Xerox's best move? As media director, other
than raising the budget, what advice would you give Xerox to help fix their problem?
Xerox's voice is little more than a whisper in these two media. They may gain
some voice by changing timing strategy – e.g. - run ads in months/weeks when
others are on hiatus. Switching to media where there is less "noise" may have
even more success.

Canon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8
Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5
Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7
Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7
Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
8. Which brand has the highest share of voice in Network TV? Lowest share in
Network TV? Give the specific shares for each:
Canon is highest with 36.5%
Xerox is lowest with 4.1%

Canon 54.6 24.4 28.0 36.5 3.3 22.6 0.0 37.8
Mita 14.1 17.3 66.8 23.9 8.4 12.0 100.0 20.5
Ricoh 9.0 35.5 0.0 9.4 14.1 39.9 0.0 14.7
Sharp 22.0 7.5 4.9 26.2 74.3 25.5 0.0 23.7
Xerox 0.3 15.3 0.3 4.1 0.0 0.0 0.0 3.3
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
9. Which brand has the highest share of voice in Magazines? The lowest in
Magazines? Give the specific share for each:
Canon is highest with 54.6%
Xerox is lowest with 0.3%

Media Mix
Canon 50.5 7.2 1.5 35.0 0.4 5.4 0.0 100.0
Mita 24.1 9.4 6.7 42.4 1.8 5.3 10.3 100.0
Ricoh 21.3 26.9 0.0 23.1 4.1 24.6 0.0 100.0
Sharp 32.6 3.5 0.4 40.1 13.5 9.8 0.0 100.0
Xerox 3.0 52.0 0.2 44.7 0.1 0.0 0.0 100.0
10. Assume you are marketing director representing a totally new brand in the copy
machine category, with a $6 million budget.
A) Do you see any opportunities here to use unexploited media? Why or why not use
them?
(Answers provided here are not all inclusive)
Media least explored by the copier brands are Network Radio, Outdoor, and
Spot TV. Network radio was completely ignored except for Mita. Spending
in the other two media, Outdoor and Spot TV, is relatively light compared
with other categories. There are clear opportunities for competitors to gain
SOV in these media or even to dominate SOV. The question arises whether
your creative message can be effective in these media – it's of little value to
be the dominant voice if nobody's listening.

10. Assume you are marketing director representing a totally new brand in the copy
machine category, with a $6 million budget.
B) Plan your own media strategy. Where would you spend the most, and why?
Magazines
Print offers an excellent media opportunity; most business executives who
make purchase decisions subscribe to B2B (Business to Business) trade
pubs. Purchase of a copy machine is a high involvement decision, and
business magazines make a perfect fit for copy-heavy ads – ads that allow
executives to study the details before making a purchase.
Newspapers
Newspapers are well read by business/managerial people. It's also an
excellent medium to announce news about your product or service
plan.
Radio
If well crafted and highly creative, radio is a very strong medium and is
often used as a supplement to print. It can inexpensively help
maintain top-of-mind awareness of your brand and also serve as an
effective reminder to take action.

Competitive spend analysis sov

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