Day 046 - 04 Nov 94 - Page 62


     
     1   MR. JUSTICE BELL:  You ought not to say you are looking at the
     2        whole of the eating out market if, in fact, you are not.
     3        But what you would like to do is make potential investors
     4        think that you are a company which is going to earn more
     5        and more each year, is that fair?
     6        A.  Again, I have to tell you what our marketing strategy
     7        is at the time and I have tried to make it as clear as
     8        possible.
     9
    10   MS. STEEL:  On page 89, in fact, there was a copy on this page
    11        of McLean Deluxe advertisement that Mr. Morris was
    12        referring to earlier, but that is not why I am looking at
    13        this paragraph.
    14
    15   MR. MORRIS:  Have we all got 89?
    16
    17   THE WITNESS:  Yes, I have it.
    18
    19   MS. STEEL:  The first box in the middle column:  "The more
    20        people know about our products, the easier it is for them
    21        to see how a meal at McDonald's fits into a healthy
    22        lifestyle.  That's why we've been so aggressive in
    23        communicating McDonald's nutrition facts directly to our
    24        customers".  Aggression is something that crops up quite a
    25        lot in these documents, is it not?  Is that how you see
    26        your advertising?
    27        A.  I think it says "aggressive" it is different, at least
    28        in my mind, as meaning as aggression.  "Aggressive" means
    29        "with vigour".
    30
    31   Q.   In the column on the right:  "How Does a Business Maintain
    32        a Single Brand Image in Many Different Cultures?"  It
    33        says:  "Paul Schrage would make a lousy diplomat.  Where
    34        diplomats see differences among the world's five billion
    35        inhabitants, Schrage focuses on the similarities. 'Everyone
    36        needs to eat', he says, 'and we see our market as everyone
    37        with an appetite'."  Is that something you would agree
    38        with?
    39        A.  Yes, on a broad basis.
    40
    41   Q.   I will not read the whole of this because we are running a
    42        bit short on time.  But in the second column down near the
    43        bottom talking about Latin America, it says:  "Schrage
    44        notes, 'Promotions for children create a response rate that
    45        far exceeds anything we get in any other place'."   That is
    46        talking about Latin America.  Do you know anything about
    47        that?
    48        A.  No, I do not.
    49
    50   Q.   Do you know what he means by what is written there, because 
    51        he is not just talking about other countries, is he, he is 
    52        talking about anything we get ------ 
    53        A.  I think that the Happy Meals in Latin America have done
    54        very well.
    55
    56   Q.   But promotions?
    57        A.  Yes.
    58
    59   Q.   The promotion of those things has gone well or has had a
    60        lot of effect?

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