Day 043 - 01 Nov 94 - Page 29


     
     1        A.  I believe because characters such as that are familiar
     2        to children, and children like and enjoy them; that is why
     3        we use them.
     4
     5   Q.   Again, before we look at the advertisements themselves, do
     6        you run the same sort of things we saw in the English
     7        advertisements, what I might call promotions or special
     8        offers, premiums?
     9        A.  Yes, we do.
    10
    11   Q.   Did you see them when they were shown in court the other
    12        day?
    13        A.  Yes, I did.
    14
    15   Q.   Do they take the form, or is it different?
    16        A.  It is essentially the same.  It is showing the
    17        different activities that are available within a Happy
    18        Meal.
    19
    20   Q.   Do you make such promotional advertisements for adults as
    21        well as children?
    22        A.  Yes, we do.  It is important to us that the adult
    23        understands what premiums are available at McDonald's, so
    24        that if, in fact, they are asked to go to McDonald's or
    25        they want to make a trip to McDonald's, they will
    26        understand exactly what their son or daughter is asking.
    27
    28   Q.   So if there is a Happy Meal advertised which has a premium
    29        attached to it, it might be a toy of some kind, that can be
    30        directed at a parent as well as at a child?
    31        A.  Yes.
    32
    33   Q.   Is there a difference in America from what we do here?  You
    34        will have noticed that on the English ones the price of the
    35        actual toy, or whatever it is, is shown on the screen.
    36        Does that happen in America?
    37        A.  Yes.  There are couple of differences between----
    38
    39   Q.   Can you say what they are?
    40        A.  Okay.  First of all, the cost of the premium is
    41        included in the meal; there is no extra charge.  As a
    42        matter of fact, in most cases the meal combination itself,
    43        if bought -- the Happy Meal, the hamburger or cheeseburger,
    44        or the Chicken McNuggetts, the french fries and the drink
    45        -- is priced at a little bit lower than if you were to buy
    46        them a la carte, if you were to buy them individually.  The
    47        premium is free within that context; there is no additional
    48        charge for that premium.
    49
    50        Secondly, in our advertising in the United States, we do 
    51        not use the full 30 seconds -- I think you may see that in 
    52        some of the ads -- against children, to talk about the 
    53        premium or the toy.  The standards in the United States are
    54        that you only use 15 seconds or half of the commercial to
    55        talk about the toy.
    56
    57   Q.   Is that in the regulatory guidelines?
    58        A.  That is in the guidelines that the networks have set
    59        up.  The other half of the commercial would then be the
    60        talk about the product itself, the goods and services of

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