Day 041 - 28 Oct 94 - Page 54

     
     1        on children in October 1982?
     2        A.  I do not know exactly what percentage, but certainly --
     3        is that that 30 something per cent?
     4
     5   Q.   31.7 per cent in 1986.
     6        A.  It would probably have been around that kind of scale.
     7        It was certainly more as a percentage than it is now,
     8        because at that time we were trying to establish what
     9        McDonald's was to everyone.  It was important that parents
    10        knew the Ronald advertising and what was going on at that
    11        time.  That job we now believe to be pretty much done.  The
    12        parents, the adults understand, and so we are moving right
    13        back down again, as you see, to just a smaller amount of
    14        money.  There is nothing -----
    15
    16   Q.   What do you mean by "the adults understand"?
    17        A.  They understand what this clown is, what Ronald
    18        McDonald stands for and what he is.  So, there is an
    19        awareness of ronald mcdonald; we know that from research.
    20
    Q.   What does he stand for?
    22        A.  He stands for the fun, the colour, the magic, the
    23        spokesperson to children that McDonald's represents.  He is
    24        a magical clown who has a good sense of humour and just
    25        represents the good, fun experience of McDonald's.
    26
    27   MS. STEEL:   What is the purpose of that?
    28        A.  The purpose is simply that when we are talking to
    29        children, this connection between Ronald is really the
    30        personification of McDonald's to children.
    31
    32   Q.   So it is to get kids into McDonald's?
    33        A.  What it is to do is to get young children who do not
    34        come into McDonald's by themselves to talk to their
    35        parents, to encourage their parents to bring them into
    36        McDonald's.
    37
    38   MR. MORRIS:  Is there not also a factor that children grow up
    39        and become adults themselves -- I am sure you would agree
    40        with that?
         A.  I agree with that statement.
    42
    43   Q.   One reason may be for not spending so much money on
    44        children -- presumably, a child that agrees with, or is
    45        influenced by, the advertising in later years has a kind of
    46        brand loyalty, is that correct, it does not necessarily
    47        always follow but, in general, you are building up a brand
    48        loyalty over a number of years?
    49        A.  It goes through phases.  As a child who really likes
    50        McDonald's grows, they may well fall out of love with 
    51        McDonald's during a particular period of their life.  Then 
    52        they may, indeed, come back to us later on.  We cannot 
    53        guarantee that once someone has an enjoyable experience at
    54        McDonald's at the age of 5 or 6, they are going to stay
    55        with us for life; that is certainly not the case.
    56
    57   Q.   You cannot guarantee it, but is that not something that you
    58        would hope that you are generating, brand loyalty, in that
    59        way?
    60        A.  Unfortunately, I cannot sort of deal in hope.  The