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.
