Day 301 - 15 Nov 96 - Page 03

     
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     2   MR. JUSTICE BELL:  No.  It is just if it was all on advertising,
     3        I would have put it in the notebook I had used on that
     4        topic.
     5
     6   MS. STEEL:   Right.  Okay.  You probably remember this, but on
     7        day 247, page 33, from line 39, there was the education
     8        pack which we were going through with Mr. Preston and which
     9        he accepted, and there was a page "competitive promotion",
    10        which said that in relation to its competitors, McDonald's
    11        normally maintained their share of voice or coverage at 70
    12        percent of the advertisements on television from fast food
    13        or other competitor companies, and up to 95 percent on
    14        radio.  So obviously, you know, they are a massive
    15        influence.
    16
    17        On page 42 of the same day, Mr. Preston - well, actually it
    18        was in the book, but Mr. Preston confirmed that McDonald's
    19        totalling marketing spend for 1993 was 41 million and that
    20        this was predominantly spent on local store marketing but 2
         million was spent on national and community projects such
    22        as the McDonald's Child Achievement Awards and the
    23        McDonald's Young Athletes Club.  It is clear from that that
    24        charitable activities are considered by the company to be
    25        advertising for the company, whatever they may say.
    26
    27        On top of that, it is worth remembering that Mr. Preston
    28        said that for 1996, McDonald's UK expenditure on
    29        advertising and promotions would be between 53 and 54
    30        million pounds.  That was on page 43, line 32.
    31
    32        Mr. Preston also said on day 6, page 77, from line 4, he
    33        agreed with the quote, I think it was from the book, that
    34        no other marketing factor has been more important in
    35        distinguishing McDonald's as a leader in fast food than its
    36        early decision to appeal to children through advertising.
    37        He said:  "I think that is basically true, yes, it is a
    38        major strength of building the company."
    39
    40        John Hawkes, on day 42, page 52, line 28, said that
         McDonald's wanted children to start singing about
    42        McDonald's because it keeps the memory of McDonald's at the
    43        forefront of their minds so that they can again ask their
    44        parent if they can come to McDonald's.  That is an
    45        indication of the desire by McDonald's to have children
    46        repeatedly asking their parents to take them to McDonald's,
    47        and we consider that effectively they are brainwashing
    48        children to programme them to think fairly constantly about
    49        McDonald's, a large multi-national which has no personal
    50        interest in the child's well being and therefore there is
    51        no reason at all why the children should need to have a
    52        constant memory of the company.
    53
    54        You said the other day, I think it was on Monday, that we
    55        should look at the motive for McDonald's giving away
    56        gimmicks, or their use of gimmicks, and giving away things
    57        like balloons and hats and flags, and so on.  I think you
    58        were sort of saying that you did not see anything wrong, as
    59        such, with just giving things away.  Whilst we would agree
    60        that giving and sharing is generally a good thing and there