Day 045 - 03 Nov 94 - Page 14


     
     1        the food items that you are selling?
     2        A.  Again, the food is in there, but I think children very
     3        much understand and know the food they get at McDonald's.
     4        I think if you ask a four or five-year old what kind of
     5        food does he get at McDonald's, he will absolutely say,
     6        "I get a hamburger, I get french fries, I get soft drinks
     7        and other things."  The new news in many of those
     8        commercials is the premium that is available that week.
     9
    10   Q.   Why do you need premiums?
    11        A.  Because it enhances the experience of McDonald's and it
    12        is effective in having children visit McDonald's.
    13
    14   Q.   So if you did not have the premiums, less children would
    15        visit?
    16        A.  I am not sure that would happen, but certainly it is
    17        part of our marketing programme.  It is a very competitive
    18        tool versus other quick service restaurants.  It enhances
    19        their enjoyment at McDonald's.  Having Happy Meals at
    20        McDonald's has increased our sales, yes.
    21
    22   Q.   Would you say it has been one of your most successful
    23        promotions?
    24        A.  It has been a very successful promotion, equally as any
    25        other successful promotion.
    26
    27   Q.   Page 58, or number 6:
    28
    29        "ronald mcdonald is not a pitchman.  He does not sell
    30        products or premiums to children or directly request
    31        donations to specific charities other than ronald mcdonald
    32        House."
    33
    34        Why does Ronald not sell product or premiums directly to
    35        children?
    36        A.  Again, from an overall, he is a spokesman for
    37        McDonald's, from the point of view that he has the brand,
    38        but he is not a salesman, from that perspective, and we do
    39        not want to use him in that kind of fashion.  He does not
    40        exhort the children to do anything when it comes to any
    41        specific premium or any specific food item.
    42
    43   Q.   But children look up to him, do they not?
    44        A.  Certainly, I believe that they like him and they are
    45        friendly with him.
    46
    47   Q.   So if Ronald likes McDonald's food, they might copy him?
    48        A.  Certainly, if Ronald likes being at McDonaldland, they
    49        would like to go to McDonald's, yes.
    50 
    51   Q.   For the food, as well? 
    52        A.  Yes. 
    53
    54   Q.   Your interest is in selling food, is it not?
    55        A.  I think our interest is in making kids happy and, at
    56        the same time, selling food, yes.
    57
    58   Q.   So this sentence, "He does not sell products or premiums to
    59        children"?
    60        A.  I think it says that, "He does not sell products or

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