Day 037 - 14 Oct 94 - Page 11
1 believe any other company has succeeded in doing to the
2 same extent) is manufacture an almost entirely artificial
3 image and boost that image by continual and huge amounts
4 of advertising dollars.
5
6 Now, the analogy I can make there is like a car tyre with
7 a leak in it. What you have to do is continually pump in
8 vast amounts of money, or air, if you like, hot air,
9 perhaps, to keep the thing going. I understand this has
10 actually been confirmed by the President of McDonald's in
11 this country at the beginning of this case, when he made
12 remarks to the effect, I am quoting from memory, that
13 "without advertising McDonald's would be dead".
14
15 Q. He said: "Without advertising there would be no business"
16 when he was asked about putting these advertising revenues
17 into increasing workers' wages?
18 A. I suspect there would be a business of some sort, but
19 not the same sort of hugely inflated image that one
20 perceives. I think there are very clear dangers here.
21 When you are selling an image that is a very insubstantial
22 thing. It means you have to take extraordinary measures
23 to preserve the integrity of that image. It means, for
24 example, you can brook no criticism. That may in itself
25 be of only academic interest, but when you are operating
26 in a field such as this one that has a very clear impact
27 upon public health, where it is in everyone's interests to
28 have great public discussion, then steps that McDonald's
29 may take to protect their image (and therefore their
30 business because that is what they essentially sell) can,
31 I believe, act very much against the public interest.
32
33 Q. We will move on from that.
34
35 MR. JUSTICE BELL: If you are moving on, the five per
36 cent -----
37
38 MR. MORRIS: The figure, as I understand it, their current
39 worldwide turnover is 24 billion dollars and the figures,
40 the last figures we had -----
41
42 MR. JUSTICE BELL: Let us suppose for a moment, we may -- I do
43 not know -- find that is right or wrong, but do you have
44 any idea from your knowledge of the advertising industry
45 as to what percentage of turnover a large producer might
46 spend? I mean, without naming it particularly, a large
47 motor car manufacturer, for instance, what percentage of
48 turnover would be spent on advertising? Do you have any
49 idea what it would be?
50 A. I do not know specifically for the motor car industry.
51
52 Q. Take another example, if you do know?
53 A. Yes. Can I also make a point here that, as
54 I understand it, we are talking purely about their
55 advertising budget.
56
57 MR. MORRIS: That is advertising and promotions.
58 A. So, that would include below the line activity as
59 well, one presumes. Something of the five per cent order
60 would be much more commonly found in an industry such as
