Day 044 - 02 Nov 94 - Page 25

     
     1        been discussed.
     2
     3   Q.   So when you do discuss developing into a new country, would
     4        you say that that approach there would be one that would be
     5        adopted generally, if it was a country which had no
     6        experience of the hamburger or beef consumption?
     7        A.  Yes.  I think I tried to comment on that before.  In
     8        general, what we would do in a new country would be to try
     9        to communicate what McDonald's actually stands for; and,
    10        therefore, you would communicate the kind of experience
    11        that you are apt to get at McDonald's, how McDonald's would
    12        fit into your lifestyle -- obviously, if you are in a hurry
    13        or with your family, because the family is extremely
    14        important to us -- and then we would market that to the
    15        consumer.
    16
    17   Q.   Would it be a fair comment to say that in a country such as
    18        that, or other countries like Japan which had no experience
    19        of hamburgers or beef consumption, that you would
    20        concentrate on convincing the children that the hamburger
         was something good?
    22        A.  No.  Mostly, in those countries, I believe that we
    23        would concentrate on establishing the kind of relationship
    24        with the children that you see in our ronald mcdonald
    25        advertising, and we would probably concentrate more on the
    26        experience.  But, certainly, we would communicate what the
    27        menu was for children; and hamburgers certainly are part of
    28        that menu.  But it would be mostly in the experience that a
    29        child could have at McDonald's, or the experience that he
    30        has with ronald mcdonald.
    31
    32   MR. MORRIS:   I think you said -- and I think Mr. Hawkes has
    33        also said -- that the expenditure on ronald mcdonald
    34        marketing goes down as it gets established; it is not
    35        needed to put so much advertising dollars into something
    36        that has already been established as a national figure or a
    37        national-----
    38
    39   MR. JUSTICE BELL:  I rather understood that also related to the
    40        degree of competition.  Is that understanding correct?
         A.  Yes.  If you are in a much more competitive
    42        marketplace, then you would have to have the message a
    43        little bit more than in a less competitive marketplace.
    44        But, in general, at least from my experience, usually in a
    45        new country you start out by trying to establish with
    46        adults what the experience at McDonald's is all about.
    47        There may be some small advertising towards children.
    48        Then, as the market develops and has the capacity to
    49        advertise more, you usually find that there is more
    50        advertising in the children's area, as well as in the adult 
    51        area. 
    52 
    53             Then, after the consumer knows more about McDonald's
    54        restaurants, and especially kids know more about McDonald's
    55        restaurants, that advertising tends to go down a bit.
    56
    57        But it varies in each country, depending on how many stores
    58        are in that country and obviously depending on what
    59        advertising is like, or what the process of advertising is
    60        like in a particular country.