Day 042 - 31 Oct 94 - Page 15


     
     1        chemicals in the milkshakes?
     2        A.  Yes, we did.  Yes, we did.
     3
     4   Q.   You were asked, I think -- we have finished with that
     5        bundle, so you can put it away -- about the advertising
     6        sales ratios which are, I think, to be found behind your
     7        statement.
     8        A.  Okay.
     9
    10   MR. JUSTICE BELL:  It is yellow volume VI.
    11
    12   MS. STEEL:  I am not sure what the number of this one is.
    13
    14   MR. JUSTICE BELL:  He has it open.
    15
    16   MS. STEEL:  You said, did you not, that you thought that
    17        McDonald's would be average or below average?
    18        A.  Just looking at these figures, it seemed that that
    19        might be the case, yes.
    20
    21   Q.   In actual fact, there is quite a lot -- in fact, the vast
    22        majority are below five per cent, are they not?
    23
    24   MR. JUSTICE BELL:  If you have done a count, put it and
    25        Mr. Hawkes probably will not disagree.
    26
    27   MS. STEEL:  I have not done a count but, just looking at the
    28        first column, there are seven above five and one or two on
    29        the boundary, and then all the rest are below five.  In
    30        fact, we should really be looking at six per cent, should
    31        we not, because you said it was five per cent that went to
    32        head office and then a further one per cent that went
    33        locally?
    34
    35   MR. JUSTICE BELL:  Is that fair comment?
    36        A.  Well, you can do that if you wish.  It is not our
    37        national advertising budget, but yes.
    38
    39   Q.   No.  But six per cent of turnover through McDonald's
    40        restaurants, one way or another, goes on advertising and
    41        promotion, does it not?
    42        A.  Approximately, yes.
    43
    44   Q.   The total turnover?
    45        A.  Approximately; yes, it does.
    46
    47   MR. MORRIS:  None of these items are, if you like, equivalent to
    48        McDonald's in terms of companies, are they, on this list?
    49        There is no other company on this list in its total
    50        advertising budget? 
    51        A.  No.  What this shows is different product categories; 
    52        and, I mean, the advertising ratio, sales ratio, seems to 
    53        move from about 40 per cent to point something or other,
    54        the demonstration being that in different product
    55        categories there is a vast different between what people
    56        choose they need to spend on advertising.  In our case, we
    57        are five or six per cent.
    58
    59   Q.   Do you know of any other equivalent companies to
    60        McDonald's, their advertising ratio?

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