Day 300 - 14 Nov 96 - Page 19


     
     1
     2        On page 392, in the fifth paragraph down on the left-hand
     3        column, it says "In 1989 McDonald's continued to have a
     4        strong presence in both kids network and syndicated
     5        programming.  McDonald's advertised in the top rated
     6        children's programmes such as Beetlejuice, Slimer..." and
     7        there is a word deleted by the hole punched there, "... and
     8        Ghost Busters and Bugs Bunny on Saturday morning, and
     9        Rescue Rangers and Ducktails and Syndication, and in prime
    10        time McDonald's youth message was featured in various
    11        animated syndicated specials", and then it goes on to give
    12        some examples of that.  Various popular films, such as
    13        Dumbo and Pinnochio.  Then it says, "The youth market was
    14        also reached by cables."
    15
    16        So there is an admission that they have a strong presence
    17        on children's television, targeting children in a big way.
    18
    19        In tab 19, which is the 1990 OPNAD Fund Annual Report, on
    20        page 406, top right hand column, it says, "McDonald's
    21        remained number one with kids but our top spot was
    22        challenged by other quick service competitors" , and it
    23        talks about Burger King launching a marketing promotions
    24        focused on kids.  "Not to be outdone, McDonald's
    25        restaurants introduced the $1.99 happy meal and have
    26        continued with it to help food sales."
    27
    28        Then, towards the end of that, at the end of that
    29        paragraph, "McDonald's kept kids' attention throughout the
    30        year with various different Happy Meals."  So again, they
    31        are saying that they are keeping attention.  Well, again
    32        they are using Happy Meals to keep in the minds of children
    33        and ensure that they keep coming back to McDonald's.
    34
    35        Just with reference to the bit about Burger King, we did
    36        refer to this before, about the fact that, you know, not
    37        only are McDonald's responsible for their own advertising,
    38        but they are responsible in part for the cumulative effects
    39        of other similar companies.  Because, as McDonald's have
    40        accepted, I think it was Mr. Beavers said, they had
    41        pioneered this type of advertising and promotional
    42        activity, and so other companies are then copying and, you
    43        know, McDonald's bears some responsibility for that.
    44
    45   MR. JUSTICE BELL:   Well, the same point as you made on page 392
    46        appears on page 407 about kids' network.
    47
    48   MS. STEEL:   Right.  Yes.  It might be interesting to note that
    49        the chart on the bottom of page 407 seems to indicate that
    50        McDonald's proportion of advertising-----
    51
    52   MR. JUSTICE BELL:   Between 37 and 49 percent?
    53
    54   MS. STEEL:   Yes, of the industry.  (Pause) Their share of
    55        network expenditure in the quick service restaurant
    56        industry.  So they are a very major player.
    57
    58        If you just note on page 407 in the bottom left-hand
    59        column, in the bottom of the left-hand column it says that
    60        prime time and sports television programming continued to

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