Day 041 - 28 Oct 94 - Page 28

     
     1        A.  That is correct, yes.
     2
     3   Q.   We also see, if we look at the amount of money spent on
     4        children's advertising, that again it is a wobbly line; it
     5        does not go straight up or straight down, does it?
     6        A.  No.
     7
     8   Q.   We notice that nearly four million was spent in 1989, but
     9        just over three million in 1990, for example?
    10        A.  Yes.
    11
    12   Q.   Broadly speaking, what is the reason for those variations?
    13        A.  There were two broad reasons.  First of all, as far as
    14        the percentage going down is concerned, as McDonald's has
    15        become more mature in the marketplace, so we need to do
    16        less awareness building amongst adults of the advertising
    17        of Ronald.  People in the country generally understand what
    18        the children's characters are and who they belong to.
    19
    20        So, we have been steadily declining in terms of our
         percentage against Ronald.  The reason for the pounds, if
    22        you like, varying is more complex and is to do with
    23        different ways of buying media at different times.  It is
    24        also because we are looking at national numbers here.  Also
    25        television in this country you buy it regionally and there
    26        are different levels of inflation in different regions to
    27        achieve the same results.  So, it becomes quite a complex
    28        media reason.
    29
    30   Q.   It may be that the variation in the actual figures does not
    31        actually matter very much, Mr. Hawkes.
    32
    33   MR. JUSTICE BELL:  Is the right-hand column, as I noticed you
    34        could not bring yourself to use the word which is actually
    35        at the top of the column, is that up to 15 year-olds?
    36        A.  On children?
    37
    38   Q.   Yes.
    39        A.  No, it would be -- again, that would vary during the
    40        course of the years.  We are still targeting towards the
         latter period here; probably it would be about up to nine,
    42        I guess, that kind of .....
    43
    44   Q.   What the percentage is there?
    45        A.  Were you saying that the children's advertising is
    46        aimed at a particular age group?
    47
    48   Q.   I want to know what the millions of pounds and the
    49        percentage on the right side of the page refers to, up to
    50        nine, up to 12, up to 15? 
    51        A.  No, it is the amount of money we would put behind 
    52        advertising that we define is targeted towards children. 
    53        That would be so in 1992, 14.66 per cent.
    54
    55   MR. RAMPTON:  What his Lordship means is what do you mean by
    56        "kids"?
    57        A.  That is why I say during the course of time that two
    58        would have changed in terms of the age appeal of Ronald,
    59        for instance, has slowly declined over the years.  So, as
    60        of now we are in our heads targeting to children about two