Day 043 - 01 Nov 94 - Page 58
1 up with the film Lion King?
2 A. Here in the United Kingdom?
3
4 Q. Here in the United Kingdom?
5 A. Yes.
6
7 Q. I will ask the question just so that you can tell us. Did
8 it have the same association in the United States?
9 A. No, it did not. They were affiliated with Burger King
10 -- quite a successful promotion, I might say.
11
12 Q. Was that a painful occurrence for you?
13 A. Yes, it was.
14
15 Q. What I want to know more seriously is this, Mr. Green: How
16 did those associations work, first of all, what is the
17 benefit to each side?
18 A. Well, again if can I start a bit back, it comes from
19 the idea that our customers enjoy entertainment and enjoy
20 going out to the movies, for example, in this case. And
21 they feel that it is a very, you know, relevant thing in
22 their lifestyle, and they want to try to participate in
23 those kinds of activities. So, it is in our best interests
24 to also associate with those things that they like to
25 participate in, movies being one of them.
26
27 So, usually once or twice a year we will have a tie in with
28 what will be the hottest or the most relevant movie for the
29 summer-time period. We will negotiate with the studio who
30 has that movie for the rights to run a promotion in our
31 restaurants using either characters or other aspects of the
32 film.
33
34 Q. So that is where the studio gets its mutual benefit?
35 A. That is correct. In fact, most of these arrangements,
36 the studio gets a significant amount of benefit because,
37 obviously, McDonald's is spending advertising money and
38 awareness for the movie that they do not have to spend on
39 their own. Plus we are involving, which is what we are
40 trying to do, our customers and they can, sort of, touch or
41 participate in that particular activity by coming to
42 McDonald's restaurants.
43
44 Q. A bit like those Looney Tune characters?
45 A. Sure. For kids, it is the same way. Children, that
46 association is the same for children.
47
48 Q. So is this, effectively, you promote each other?
49 A. Yes, I would say that but I think that, from a
50 promotion point of view, the benefit of the publicity is in
51 the favour of the film company; the benefit of getting
52 increased sales in our stores is in our benefit.
53
54 Q. Yes. Do the financial arrangements of these, what I call,
55 copromotions -- it may be the wrong word -- vary?
56 A. Yes, they vary. In my tenure I have known times when
57 each party pays for its own costs and, therefore, there are
58 no dollars that are exchanged. There have been times when
59 actually the movie companies have helped offset our costs
60 and paid us dollars. There have also been times, which is
