s in the company. Internal communication with all McDonald's employees is therefore a major part of our public relations programs. Effective and innovative marketing has positioned and secured McDonald's leadership in the quick service restaurant industry. In order to maintain that position we ensure that every restaurant in our system is involved with the development and implementation of our annual marketing plans. It goes without saying that the people who own, operate and manage our restaurants are the closest to our customers. The franchisees of all stores make an important contribution to the development of the annual marketing plan through a truly co-operative process. The marketing budget is comprised of a percentage of sales from all stores and, through this contribution, all franchisees receive a voting right on the marketing calendar. In 1998, the national media budget was approximately $50 million. This co-operative arrangement means every time a new campaign is launched, it has the support of the system to ensure its successful implementation. Strategic planning sessions are held with franchisees at the start of each planning period and key strategic promotions and directions are agreed. Marketing activities are then implemented in consultation with the licensee community which meets regularly in each State to discuss and evaluate past and future marketing direction. DDB and M&C Saatchi DDB is McDonald's leading national advertising agency. DDB's responsibilities include the development of all national television, radio, print and outdoor advertising. In addition, DDB is involved with product and consumer research and is responsible for the development of media strategies and purchase of advertising space or advertising airtime in national media. M&C Saatchi is McDonald's second advertising agency. M&C Saatchi work primarily on promotional advertising. Creata Promotion Creata Promotion is the supplier of premiums for McDona...
