Day 257 - 06 Jun 96 - Page 50


     
     1        A.  To clarify, I would say that probably the role of
     2        advertising is to "encourage".  The role of the restaurant
     3        expansion is to "enable".  So, in the advertising context,
     4        probably "encourage" was the correct word.
     5
     6   MR. JUSTICE BELL:  Yes, I see.
     7
     8   MS. STEEL:   But in terms of if somebody lives near enough to a
     9        store to be able to go there on a fairly regular basis, it
    10        is not going to make any difference to them whether or not
    11        you build another store, is it?  I mean, they are quite
    12        capable of going there.  It would be the advertising to
    13        encourage them to go there more often?
    14        A.  Yes, there is no doubt that advertising -- that is the
    15        role of advertising and we would want to encourage people
    16        to visit our restaurants more often.
    17
    18   MR. JUSTICE BELL:  Is what you said any more than this?  The
    19        advertising is to encourage people to go to McDonald's,
    20        whether to go to McDonald's generally or just to go there
    21        if they have an impulse to have a burger, to go there
    22        rather than to Burger King.  The expansion is to do your
    23        best to make sure there is a McDonald's near at hand when
    24        they feel this impulse?
    25        A.  That is correct, yes.
    26
    27   MS. STEEL:   Can I just ask you a fairly probably simple
    28        question, on page 6 of the same tab (AF2 this is), why are
    29        you interested to know if people visited because of the
    30        influence of children?
    31        A.  Because a family eating experience or a family
    32        restaurant is our core positioning in international
    33        markets.  It is our key competitive advantage.
    34
    35   Q.   Basically, you want to know this information so that you
    36        can attract more children and thus attract their parents as
    37        well?
    38        A.  That -- certainly children are part of the decision
    39        making process; yes, children provide part of the decision
    40        making process.  We know we are doing our job if we are
    41        seen in a good light as a place that children rate or
    42        parents rate as a good place for families or a good place
    43        for children, because we deliberately aim to position
    44        ourselves as a family eating experience in the advertising,
    45        and we deliberately aim to execute that in terms of family
    46        eating experience in the restaurant.  So it is very much
    47        part of what we are about.
    48
    49   Q.   But the aim being to get more children to come in and thus
    50        bringing in their parents.  There is not a problem with 
    51        that, is there? 
    52        A.  No, the aim being to get more families to visit and, 
    53        therefore, increase the sales we get per visit.
    54
    55   Q.   Right.  If we go to AF4.
    56        A.  Yes.
    57
    58   MR. MORRIS:  Sorry, just before we pass over AF3 second page, or
    59        indeed even the first page, when we were talking about
    60        average number of visits being 19 to 30, say, per year?

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