Day 046 - 04 Nov 94 - Page 58


     
     1   Q.   The last sentence that was read out, you do not think that
     2        reflects ------
     3        A.  In the broadest possible sense, yes, I agree with that,
     4        but from a marketing perspective, I have told you what
     5        I think is what we are trying to do from a marketing
     6        perspective, and it is very accurately portrayed in the
     7        first paragraph.
     8
     9   Q.   This is the general section about marketing, is it not?
    10        A.  I believe that marketing comes after this section.
    11
    12   Q.   Yes, but it is on the same page, it is that area?
    13        A.  It precedes the marketing, yes, it does.  It looks like
    14        "franchising" is in front of that.
    15
    16   Q.   This did not appear just one year, did it?  As I said,
    17        I drew it to your attention in another year?
    18        A.  That is correct.
    19
    20   Q.   You are on the top management team, are you not?
    21        A.  I am not -- I am part of the top 45 or 50 officers in
    22        the company.
    23
    24   Q.   Right.  So, if you do not think it accurately reflects the
    25        position of the company, in particular, in marketing, why
    26        did you not say something about it and get it changed in
    27        the next year's annual report?
    28        A.  Again, I think it does accurately portray the marketing
    29        perspective; it says so in the first paragraph.
    30
    31   Q.   You are actually going much wider in your target in trying
    32        to expand your -- in creating new markets, is that not
    33        right?  McDonald's is trying to create new markets, not
    34        just take from existing ones?
    35        A.  Again, I am not sure.  Are you talking international
    36        now or are you talking ------
    37
    38   MR. JUSTICE BELL:  No.  What has been put to you is that,
    39        whether or not your prime target are QSR, existing QSR
    40        customers or not, by the way your competition extends to
    41        anyone who might provide eating-out dollars?
    42        A.  That is correct.
    43
    44   Q.   And that you would like to expand into custom which is
    45        going to other than QSR outlets at the moment.  It is not
    46        very elegantly expressed, but that is really what has been
    47        put to you.  You would like to draw from the other 50 per
    48        cent.  Do you remember how there was a line?
    49        A.  Yes, if the attributes that we advertise draws from the
    50        other 50 per cent, absolutely, that is fine.  We will 
    51        accept those customers, but they are not targeted to them. 
    52        I tried to make it fairly clear exactly on a marketing 
    53        perspective where we think the target audience is.  We
    54        target pretty much what this first paragraph and,
    55        essentially, the second paragraph says.  When you talk
    56        about mom and pops and take-out pizza and coffee shops and
    57        convenient food stores and delis and supermarket freezers
    58        is a quick, when you are in a hurry, inexpensive way;
    59        microwave ovens the same thing from the attribute of
    60        convenience.

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