Day 247 - 10 May 96 - Page 33


     
     1
     2   MR. JUSTICE BELL:  Again it has "93 restaurants opened in" on
     3        page 5 of "The History and Background of McDonald's" and
     4        there are other tables, there are restaurants: "As of
     5        December 1993, McDonald's operated 14,000 restaurants", so
     6        it looks as if it is ----
     7        A.  About that time.
     8
     9   Q.   The world, as it were, as it was at the end of the December
    10        1993?
    11        A.  I think that is correct.
    12
    13   Q.   Does that sound right?
    14        A.  For those numbers it sounds correct, sir, yes.
    15
    16   MS. STEEL:  There are some figures about how many new
    17        restaurants you plan a year in the UK.  It says:  "50 new
    18        restaurants a year".  Is that the current situation now?
    19        A.  No.  It has accelerated from that.  We will open
    20        probably 100 this year.
    21
    22   Q.   The next one I want to refer to is:  "Developing and
    23        Implementing the McDonald's Marketing Strategy".
    24
    25   MR. JUSTICE BELL: Is that a separate piece?
    26
    27   MS. STEEL:  It seems to be separate.  I do not know actually
    28        because it has page 6 on the front page of it.
    29
    30   MR. JUSTICE BELL:  Yes.  It is part of the one with the arches
    31        on the front and it is a reverse page 6.
    32
    33   MS. STEEL:   Right.  I actually want page 9 within that section?
    34        A.  OK.  It starts with "A useful way" at the top?
    35
    36   Q.   That is the one, yes.  Under "Competitive Promotion" which
    37        is the second heading, it says:
    38
    39        "Before we communicate with our consumers, we must be aware
    40        of what our competitors are communicating so that we can
    41        create a beneficial difference between them and us.
    42
    43        We must also be aware of how much they are spending, where
    44        they are spending and through which media channel.  This
    45        will all contribute to our share of voice in any given
    46        median, which we normally maintain at around 70 per cent on
    47        TV and up to 95 per cent on Radio."
    48
    49        Are those figures correct?
    50        A.  I think they were at the time.  I do not believe they 
    51        are quite that high currently. 
    52 
    53   MR. JUSTICE BELL:  What do they mean?  What do the percentages
    54        mean?  What is "share of voice"?
    55        A.  When we compare the amount of money spent by ourselves
    56        and our competitors on advertising, we add them all up,
    57        come to a total, we divide what we spend by the total and
    58        we get a percentage.  Therefore, if the total was ten
    59        million and McDonald's spent 7 million, our share of voice
    60        would have been 70 per cent.

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