Day 041 - 28 Oct 94 - Page 44

     
     1        may well affect our service in some of those areas, but
     2        I am sure in principle we can sell other products.  Whether
     3        or not that would be the right business move for us is a
     4        judgment that we are continually making.
     5
     6   Q.   Just while we are on that subject, pizza, you have promoted
     7        pizza in some way recently; is it available at all stores?
     8        A.  No, it is not.
     9
    10   Q.   Do you know how much money was spent specifically or what
    11        percentage of ads were geared to pizza promotion?
    12        A.  Off the top of my head, no, no, it was very much a
    13        test.
    14
    15   Q.   But pizzas are popular in this country; is that correct?
    16        A.  The total category of pizza is popular in this country,
    17        yes.
    18
    19   Q.   As a marketeer, you are, presumably, aware that your
    20        competitors are advertising pizzas on quite a large scale?
         A.  Yes, I am.
    22
    23   MR. JUSTICE BELL:  Where are you going on this line?
    24
    25   MR. MORRIS:  I am feeling my way really because -----
    26
    27   MR. JUSTICE BELL:  You have to have a target though.  You can
    28        feel your way towards the target, by all means, but you
    29        have to have a target.  When you mentioned "salads" I can
    30        see there might be some point in that, but then you decided
    31        that was not a very good example which is why I am asking
    32        the question now.  Are you suggesting that McDonald's has
    33        such a powerful marketing machine that it could sell
    34        anything, or is there another target you are aiming at?
    35
    36   MR. MORRIS:  Just say, for example, on fish products, you say
    37        fish and chip shops are the most popular segment of the
    38        market, is that correct, in fast-food?
    39        A.  Yes, they are the most dominant in numbers, yes.
    40
    Q.   Do you think it is possible that McDonald's is capable of
    42        challenging the fish and chip shop primacy if it sold fish
    43        as a main product?  Do you think it is capable of doing
    44        that?
    45        A.  We have, I cannot remember how long ago, but we have,
    46        in fact, tested a fish product that was similar to that
    47        that you would find in a fish and chip shop.
    48
    49   MR. JUSTICE BELL:  Not in a bun, you mean?
    50        A.  Not in a bun, no.  It was a battered cod product and it 
    51        was not successful.  The reason that some of these products 
    52        are not successful is because we have such a strong 
    53        franchise in the market that we are in in doing what we do
    54        well -- that is why people come to us -- and there comes a
    55        point where people choose to go to another restaurant to
    56        get the selection of that food that they want; that is
    57        their choice.
    58
    59   MR. MORRIS:  But when you opened up in 1974 in this country, is
    60        it feasible that you could have, say, been a fish and chip