Day 247 - 10 May 96 - Page 42


     
     1
     2        "In 1993, 25 million customer transactions were completed.
     3        (Each transaction accounts on average for 2 meals) with an
     4        average spend of £2.89 per customer."
     5
     6        Relating back to what you were saying earlier, it is the
     7        average purchase of two meals as opposed to two drinks, or
     8        a drink, or whatever?
     9        A.  No, it is what I said earlier.  For me, lunch today,
    10        the meal was a bottle of orange juice and 2 bananas.  This
    11        evening it will be something different at home.
    12
    13        In terms of McDonald's, if I come in and make a purchase
    14        and I buy for myself, typically I will be purchasing for
    15        one other person at the same time.  At the same time, I may
    16        buy a cup of coffee for myself and a sandwich, a drink and
    17        a Fry and an apple pie for the other person, but what we
    18        are talking about that is that for every transaction, for
    19        every time a sale is completed, 2 people are fed something
    20        in a McDonald's restaurant.  It could be one item; it could
    21        be a large meal.  It could be almost anything.  It should
    22        not get confused by the term "meal" of itself.
    23
    24   Q.   So, McDonald's uses the word "meal" in a different way to
    25        what most people conceive it to be?
    26        A.  Well, I use it as the way I explained it, and that is
    27        what it meant when they go through the numbers here.
    28        Everything ties back to our sales for the year's
    29        transactions; it makes logical sense.  I have no way of
    30        knowing when someone comes in to buy something if the one
    31        sandwich, 2 fries, 2 milkshakes are going to be for them or
    32        for another person individually.
    33
    34        Over a time we have done much research on this and we know
    35        that for every time a sale is completed, two people have
    36        something to eat or drink.  As it says there, the average
    37        spend at this point in time per transaction or per customer
    38        was £2.89.
    39
    40   Q.   If you turn over to page 12 under "General Facts" it says:
    41        "McDonald's total marketing spend for 1993 was £41m".  Do
    42        you know what it is now?
    43        A.  What will it be this year?  On advertising, our spend
    44        this year will be about five per cent of total sales, so
    45        that will work out to be something like £46m or £47m,
    46        I think, on advertising.
    47
    48   Q.   Right.  That is for the UK?
    49        A.  For the UK, yes.
    50 
    51   Q.   The figure of £41m in 1993, it says: "This was 
    52        predominantly spent on TV and radio with five million spent 
    53        on local store marketing and 2 million on national and
    54        community projects such as McDonald's Child of Achievement
    55        Awards and the McDonald's Young Athlete Club".
    56
    57        The project such as the Child Achievement Award and the
    58        Young Athlete Club come out of the advertising budget or
    59        the advertising money?
    60        A.  They come out of sales.

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