Day 046 - 04 Nov 94 - Page 58
1 Q. The last sentence that was read out, you do not think that
2 reflects ------
3 A. In the broadest possible sense, yes, I agree with that,
4 but from a marketing perspective, I have told you what
5 I think is what we are trying to do from a marketing
6 perspective, and it is very accurately portrayed in the
7 first paragraph.
8
9 Q. This is the general section about marketing, is it not?
10 A. I believe that marketing comes after this section.
11
12 Q. Yes, but it is on the same page, it is that area?
13 A. It precedes the marketing, yes, it does. It looks like
14 "franchising" is in front of that.
15
16 Q. This did not appear just one year, did it? As I said,
17 I drew it to your attention in another year?
18 A. That is correct.
19
20 Q. You are on the top management team, are you not?
21 A. I am not -- I am part of the top 45 or 50 officers in
22 the company.
23
24 Q. Right. So, if you do not think it accurately reflects the
25 position of the company, in particular, in marketing, why
26 did you not say something about it and get it changed in
27 the next year's annual report?
28 A. Again, I think it does accurately portray the marketing
29 perspective; it says so in the first paragraph.
30
31 Q. You are actually going much wider in your target in trying
32 to expand your -- in creating new markets, is that not
33 right? McDonald's is trying to create new markets, not
34 just take from existing ones?
35 A. Again, I am not sure. Are you talking international
36 now or are you talking ------
37
38 MR. JUSTICE BELL: No. What has been put to you is that,
39 whether or not your prime target are QSR, existing QSR
40 customers or not, by the way your competition extends to
41 anyone who might provide eating-out dollars?
42 A. That is correct.
43
44 Q. And that you would like to expand into custom which is
45 going to other than QSR outlets at the moment. It is not
46 very elegantly expressed, but that is really what has been
47 put to you. You would like to draw from the other 50 per
48 cent. Do you remember how there was a line?
49 A. Yes, if the attributes that we advertise draws from the
50 other 50 per cent, absolutely, that is fine. We will
51 accept those customers, but they are not targeted to them.
52 I tried to make it fairly clear exactly on a marketing
53 perspective where we think the target audience is. We
54 target pretty much what this first paragraph and,
55 essentially, the second paragraph says. When you talk
56 about mom and pops and take-out pizza and coffee shops and
57 convenient food stores and delis and supermarket freezers
58 is a quick, when you are in a hurry, inexpensive way;
59 microwave ovens the same thing from the attribute of
60 convenience.
