Day 041 - 28 Oct 94 - Page 09

     
     1        lasting success or failure within the restaurant that is
     2        far more important than the advertising promise itself.
     3        So, I would say the product is more important than the
     4        advertising.
     5
     6   Q.   Can you tell us off the top of your head what percentage of
     7        its turnover McDonald's in this country spends on
     8        advertising?
     9        A.  It does vary year by year, but not by much; it is
    10        around about the five per cent mark.
    11
    12   Q.   Can you please find two volumes of yellow backed files,
    13        numbers V and VI.  Can we take the Advertising one first?
    14        My Lord, for the moment, all I want from it are the new
    15        documents which I handed in this morning.
    16        (To the witness):  Mr. Hawkes, if you turn to tab 1 of that
    17        file you will find, or I hope you will find, a statement by
    18        you?
    19        A.  Yes.
    20
    Q.   Closely followed by a statement by Mr. Michael Hayden, your
    22        predecessor?
    23        A.  Yes.
    24
    25   Q.   Which is 10 pages long.  Then you have appendix 1 to
    26        Mr. Hayden's statement, page 14, do you have that?
    27        A.  Yes.
    28
    29   Q.   Which is signed by Mr. Hayden.  Go through to page 19 and
    30        after that you should find a table, do you?
    31        A.  Yes, I do.
    32
    33   Q.   I want to come back to that -- is it called Sales
    34        Advertising Ratios?
    35        A.  Yes.
    36
    37   Q.   I want to go on from that to what I hope is the next
    38        document which is a sideways document, is it?
    39        A.  Yes, it is.
    40
    Q.   Called Advertising Sales Ratios, 290 Markets (1990).
    42        A.  That is right.
    43
    44   Q.   Can I ask you this:  By who was this document prepared?  Do
    45        you know?
    46        A.  The document came via our advertising agency,
    47        Leo Burnett, but the actual references or where the numbers
    48        come from I am not aware of.
    49
    50   Q.   I am only going to pick out a very few of these.  These are 
    51        categories of advertisers, they are not particular 
    52        companies; is that right? 
    53        A.  Yes.
    54
    55   Q.   Particular categories of products, I suppose, is that
    56        right?
    57        A.  Yes, it is.
    58
    59   Q.   Look, for example, at the second one on the first page in
    60        the left-hand column.  It would appear from this that