Day 048 - 08 Nov 94 - Page 16


     
     1        not change their minds.
     2
     3   Q.   But you do carry on advertising.  So you do not think you
     4        have reached that point?
     5        A.  No.  We carry on advertising because, as I have said,
     6        we are trying to compete in the quick service restaurant
     7        market, so that we can take share from our competition; and
     8        we believe we need to stay top of mind to do that, and
     9        advertising is a key part of that.
    10
    11   Q.   So there is not a cut-off point?
    12        A.  There are numbers of people out there who have either
    13        totally got the message which, if we were able to not
    14        advertise to them (sic), would still come to McDonald's
    15        because somehow they know us.  There are others that may go
    16        to Burger King, for the same reasons.
    17
    18   Q.   They might forget about McDonald's?
    19        A.  No, they go to Burger King, because they are loyal to
    20        Burger King.  We wish to attract those Burger King
    21        customers to come to McDonald's.  Unfortunately, the
    22        advertising medium of television, et cetera, is not
    23        discrete enough to be able to target that carefully.
    24
    25   Q.   So are you saying that people are only going to come to
    26        McDonald's if you constantly remind them of your existence
    27        and of what McDonald's offers?
    28        A.  We believe that the most important reason for people
    29        coming to McDonald's, again, as I have said before, is the
    30        experience they get from the restaurant; if they enjoy the
    31        food, they enjoy the experience, they will come back.
    32
    33   Q.   So why advertise?
    34        A.  We advertise because chipping away at us the whole time
    35        is a mass of other messages that require us to compete in
    36        that market place in order to gain brandship.
    37
    38   Q.   If people remember how wonderful you are, they will just
    39        come back, anyway?
    40        A.  In terms of the overall communications of messages that
    41        go to them, people forget.  You have to keep your name in
    42        front of people's minds.
    43
    44   Q.   Right.  So you are advertising to remind them of your
    45        existence?
    46        A.  Well, of course we are.  We want to be top of mind.
    47
    48   Q.   So you are continually advertising to remind them of your
    49        existence?
    50        A.  We would love to be able to optimise our advertising to 
    51        the point where it keeps it top of mind, but does not waste 
    52        it. 
    53
    54   Q.   Could you get out pink volume VII, please, and turn to
    55        tab 12?  This may take a bit of time, because I want to go
    56        through all the charts that are at the back.
    57
    58        If you turn to page 225, we have got the number of weeks
    59        that children's advertisements were shown on children's
    60        television and on adults' television, and this one is for

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