Day 044 - 02 Nov 94 - Page 10
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2 MR. JUSTICE BELL: It might be, from the term which you have
3 given to it, a small family concern with one outlet?
4 A. Yes.
5
6 Q. Or two outlets in a particular locality; that is what you
7 mean, is it?
8 A. Yes, that is correct. Usually, they are owned by a
9 single person and they have one or two or three outlets.
10
11 MS. STEEL: You think it means that, rather than someone's
12 mother and father, the meals provided at home?
13 A. No. Mom and pop's, again, is a phrase used in the
14 United States to indicate a restaurant or a food chain that
15 only has a very few number of outlets.
16
17 MS. STEEL: Right. Okay.
18
19 MR. MORRIS: So if you disagree with that as a marketing
20 strategy, who makes the decisions in McDonald's
21 Corporation? Does the board which that represents,
22 presumably, or do you make the decision?
23 A. Decision as to what?
24
25 Q. Marketing strategy.
26 A. Most of the decisions for marketing strategy are made
27 by people in my department.
28
29 Q. Yes. I am talking about -- you said that you did not agree
30 with that as a marketing strategy. So do you get
31 instructions from the board, or do you just make all your
32 own decisions as regards McDonald's international marketing
33 strategy?
34 A. Well, I make decisions primarily about the United
35 States, and I make decisions as to the advertising that we
36 do in the United States.
37
38 Q. You must have some guidance, must you not?
39 A. Certainly, over a long period of time since I have been
40 with the company, I have had guidance from my superior, who
41 is the Executive Vice President of Marketing, and others.
42
43 Q. So would you say, then -- this would be guidance from the
44 highest level, presumably, if it is in the annual report --
45 that you may or may not agree with it? That is no problem,
46 is it?
47 A. I am not sure that my disagreement with this from a
48 marketing perspective is incongruous with what this says.
49 My agreement or my statement is: how do we market, what is
50 the strategy that we market to in the United States? We do
51 not market to every single kind of food establishment.
52 That is not what I would consider our competition. The
53 strategy that we develop in our advertising goes against a
54 very specific target, as opposed to all food.
55
56 MR. JUSTICE BELL: If you have an ad with premiums for children
57 which they could collect a set of over a period of four
58 weeks, does that not go to hoping that they might choose to
59 have a McDonald's rather than stay in and get the toy?
60 A. Well, certainly, that may happen, but in the
