Day 054 - 24 Nov 94 - Page 57
1 Smarties and thus maintain your market share; it is also
2 about advertising to new consumers because older children
3 move out of the Smarties market.
4
5 Q. To be replaced by younger children?
6 A. Yes, yes. So, even in a mature market, it is not a
7 static market. I have also heard it said that many people,
8 even within the food and advertising industries, do not go
9 along whole-heartedly with the argument that it is only
10 about brand share. But it is, I think, more to do with the
11 public front than there being real evidence that this is
12 the case.
13
14 Q. Apart from advertising, do you have concerns about other
15 forms of promotional activity undertaken by companies such
16 as McDonald's, for example, going to schools and dentists
17 and things like that?
18 A. Yes. These are all activities that are undertaken with
19 a promotional intent. I know of one example where children
20 were provided with vouchers for free food, free foods from
21 McDonald's in return for competing in school sports, for
22 taking part in school sports.
23
24 Q. What would be your concerns about that?
25 A. My concerns would be that it is, whilst it is seen,
26 perhaps, as being an altruistic thing to do, to be
27 encouraging participation in sport, that this deflects from
28 the underlying promotional message that is going on through
29 such schemes. It is advertising but it is advertising in a
30 covert way.
31
32 Q. Is it something that you would think was of particular
33 concern if it was by somebody that might be respected by
34 the child or looked up to or whatever?
35 A. Yes, if it is being provided by a teacher or a dentist,
36 then it is being given with an apparent endorsement because
37 a teacher or a dentist is a respected figure, one that has
38 a profession, one hopes, is respected. That endorsement is
39 an apparent endorsement, but I think it is probably
40 misleading at the same time.
41
42 MR. MORRIS: Just on promotional activity in general,
43 sponsorship: I think that McDonald's Senior Vice President
44 in charge of Marketing, David Green, gave evidence that
45 community and charitable activity was "good business"
46 amongst other things. If that was the case that they felt
47 that, never mind specific things such as dentists' and
48 doctors' endorsements but, in general, how would you
49 describe the broad range of promotional activities, the
50 effect of those of companies?
51 A. I think that degree of sponsorship, sponsorship tends
52 to be seen in a more positive light than advertising.
53 Sponsorship is increasing, and it is particularly popular
54 with the makers, manufacturers of products or services, who
55 think that by being associated with a particular
56 organisation, a particular project, that will enable their
57 company to be seen in a good light. By being seeing in a
58 good light, it will deflect criticisms that may be from
59 time to time raised about a particular company; it will go
60 some way in attempting to mitigate against that. At the
