Day 258 - 07 Jun 96 - Page 16

     
     1        we call 'local store marketing', you see if referred to as
     2        LSM elsewhere, which I think encapsulates both in-store
     3        marketing and out-store marketing, which is basically, as
     4        we have just described, restaurant level marketing activity
     5        which would include the restaurant going out into its into
     6        community making contacts with organisations.
     7
     8   Q.   That is part of their marketing strategy?
     9        A.  Yes.
    10
    11   Q.   Yes.  Then it has examples of that.  If you look on page
    12        644, 'targeted local store marketing', and under the
    13        heading 'develop your plan' in the right-hand column, 'Mark
    14        down the special events coming up in the community over the
    15        course of the year; holidays, school events, parades,
    16        community fund raisers, block parties.  Each can give you a
    17        strong marketing opportunity to plan far enough ahead to
    18        take full advantage of the situation'.  Those would be the
    19        kind of things that would happen in public relations and
    20        marketing activity?
         A.  At local level.
    22
    23   Q.   At local level, yes.  OK.  Then it has on page 645 --
    24        I have a bad photocopy here, but I think it says, this is
    25        the first full paragraph:  'Is a competitor moving into
    26        your area?  Your best weapon is outstanding operations.  No
    27        other competitor can match McDonald's high standards of
    28        service.  Conduct a ronald mcdonald personal appearance and
    29        implement an aggressive promotion of your own to coincide
    30        with the competition opening.  You will not only keep your
    31        current customers but you will increase sales and
    32        demoralise the competition'.  I cannot read the next word.
    33        Something... 'with one world'.
    34
    35   MR. JUSTICE BELL:  'All with one well-planned LSM'.
    36
    37   MR. MORRIS:  LSM programme.  The ronald mcdonald use there, that
    38        is the thing I am particularly interested in, is an
    39        integral part of establishing the brand image in a local
    40        area?
         A.  Yes, primarily because, as I said, our key competitive
    42        advantage the world over is being a family restaurant and
    43        ronald mcdonald's is central to that.  Yes.
    44
    45   Q.   Then it says, 'Be at the front of every parade in your
    46        community, literally and figuratively.  Be prepared to
    47        stretch forward and take advantage of the opportunity', et
    48        cetera.  OK.  Then on page 647 there is a chart, 'sales
    49        building priorities'.  Is this for a new store as far as
    50        you can see and then progressively, as you go up the chart 
    51        from the base, it is a chart of on-going community 
    52        relations; those would be the progressive stages? 
    53        A.  Yes, this is indeed for a new restaurant, but it is a
    54        new restaurant in the US market.  These are all US specific
    55        programmes listed here, and, whilst a similar flow would
    56        take place in most market places, this is a
    57        country-specific example, this would not relate to most
    58        countries in the McDonald's international.  Some countries
    59        do not do brand openings, some do, it is up to the
    60        discretion of local management.