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

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