Day 042 - 31 Oct 94 - Page 56


     
     1        associated with Disney, I would doubt.  It is much more to
     2        do with the premiums in this case, the toys that we were
     3        selling.
     4
     5   Q.   Is it mostly older children that are going to see the Lion
     6        King?
     7        A.  I think if Disney were here, I think he would tell you
     8        it would be a vast cross section between young children and
     9        adults.  It is very much a family film.
    10
    11   Q.   So a lot of kids might enjoy the film and associate
    12        McDonald's with it and come in even if they did not buy the
    13        toys because, obviously, older kids do not buy the toys?
    14        A.  I mean, it is possible they could visit McDonald's on
    15        that basis, and then when they get there, decide not to buy
    16        the meal, yes, that is possible.
    17
    18   Q.   Let me put an obvious question:  To me, it is blindingly
    19        obvious that McDonald's achieves an enormous amount of
    20        publicity through associations and mutual agreements which
    21        they do not actually pay for.  Obviously, you do pay for
    22        certain things and to get something off the ground you pay
    23        a down payment.  But if you had to spend that amount of
    24        money on actual advertisements on television, it would cost
    25        you a phenomenal amount.
    26
    27        So, is that one of the aims of the promotional department
    28        to get promoted without actually having to spend an
    29        equivalent amount of money that you would have to do if you
    30        actually just put ads on the television screen?
    31        A.  From a business perspective, obviously, one is trying
    32        to maximise the deal that you can get with someone.  If
    33        Disney had agreed to produce the Lion King simply so that
    34        we could sell more Happy Meals, then I am sure we would
    35        have been grateful for that, but we are actually riding on
    36        the back of Disney's popularity for the Lion King.  We come
    37        to a business agreement with them.
    38
    39   MS. STEEL:   You have talked about the experience in-store is
    40        important in that if the experience in store does not live
    41        up to the ad, then people will not come back; that is
    42        right, yes?
    43        A.  Yes.
    44
    45   Q.   Is that the function of the real life Ronald?
    46        A.  No, it is in terms of the broad experience.  All
    47        advertising can do is encourage people to come into the
    48        restaurant.  If then something goes wrong, if we fail them
    49        in some way in the restaurants, the children do not enjoy
    50        it, the parents do not enjoy it -- the food is cold or if 
    51        it is bad value for money; there can be a whole host of 
    52        things that may go wrong -- then we are letting down that 
    53        customer.
    54
    55        We have given them a promise and we have let them down,
    56        which is why I said on Friday how important it is that it
    57        is what happens in the restaurant that is the key to having
    58        people coming back, and really where our advertising
    59        genuinely takes place in the restaurant, and that is the
    60        experience.

Prev Next Index