Annexure “B”

Benefits to Sole Sponsor 

I.          A minimum order of 60 Saeco bicycle jerseys paid for ‘in toto’ (approx. $5,200 incl freight) in advance by Phil Johnston, whereupon Sole Sponsor’s bicycle jerseys will regularly appear at over 40 cafés across Sydney.  

II.          If a local bike shop's name is on one sleeve, and the logo of its primary bike supplier eg Trek or Specialised on the other sleeve, that bike shop would be induced to carry a supply of Sole Sponsor’s jerseys and encourage sales because its name and primary bike supplier is displayed.  That would increase the number of Sole Sponsor’s jerseys purchased, on the streets and at café stops.

III.         Sole Sponsor is able to purchase jerseys ‘at cost’ ie. approx. $75 for short sleeve and $90 for long sleeve from the initial order by Muggaccinos.  Sole Sponsor could sell these jerseys at cost to interested cafes, thereby achieving free publicity. Or give them to important cafés.

IV.        A Sole Sponsor jersey(s) can be framed in between two clear slices of Perspex properly secured with clips for about $30 a frame.  These could be on display on a rotational basis at cafes using Sole Sponsor’s equipment that are frequented by cyclists.

V.         Sole Sponsor could run a few magazine adds with a pic similar to the Saeco cyclist or a more casual setting with cyclists wearing the new Saeco jersey.  Unlike Saeco’s previous foray into professional cycling this invitation is capped at $1,000 for Muggaccinos to get 60 Saeco jerseys in the public eye.  Hence, the Sole Sponsor’s cost to achieve a nexus with the burgeoning recreational cycling market would be a veritable pittance.

VI.        30 Muggaccinos cyclists wearing Sole Sponsors jersey would be available for a photo shoot for an advertising campaign that Sole Sponsor wanted to run.

VII.       Seasoned Muggaccinos’ cyclists would politely distribute a joint Sole Sponsor/Muggaccinos marketing (business) card to 40 different cafes across Sydney in next 12 mths and invite those café proprietors to obtain a quote from Sole Sponsor if they are dissatisfied with their current coffee equipment, thereby using up 240 cards allowing for average minimum of six visits per annum.  At least 3 monthly, Phil Johnston would e-mail Sole Sponsor an updated schedule of the 40 cafes Muggaccinos distribute marketing cards to whilst wearing Sole Sponsor jersey.  The updated schedule would list when Muggaccinos lasted visited each café and the name of staff we distributed marketing cards to.  

VIII.      Muggaccinos cyclists would enthusiastically distribute remaining 1,700 marketing cards per annum to other cyclists and prospective cyclists (some coffee lovers) inviting them to -
*          review Muggaccinos.com which would prominently displays a Sole Sponsor logo on its Home Page; and
*          commence cycling with Muggaccinos. 

IX.        Phil Johnston would delete the logos of about 30 coffee suppliers from Nosh Stops webpage and insert a small Sole Sponsor logo next to each café listed therein which uses Sole Sponsor’s coffee.  Sole Sponsor could inform the names of other cafes which stock its coffee to be added to Nosh Stops provided those cafes are convenient to cyclist routes. 

X.         Opportunity to display large photos (and a caption of the presentation underneath) of a cheque handover ceremony amidst 40 or so cyclists wearing Sole Sponsor jerseys and bicycles –
a)          in your office; or
b)          on your website.

XI.        Marketing benefits to Sole Sponsor of a unique/idiosyncratic cycle club - gaining popularity amongst Sydney’s endurance cyclists due to – 

(a)          an innovative website which provides challenging, arduous rides each w’end and promotes thru its weekly issue of the Bullsheet; 

(b)          creative community ventures such as “Adopt a Blind Cyclist”. 

XII.       Sole Sponsor is entitled to negotiate with other cycle clubs/groups across Australia, without requiring consent from Muggaccinos, for those clubs/groups to purchase the same style jersey with other cycle club/group’s name on the back, in lieu of Muggaccinos.com and KOMpm.com - the unit price per jersey would be markedly lower if another cycle group/club ordered from the same manufacturer as the initial order of 60 jerseys because the one-off  template set-up design cost to design the jersey would reduce to $30 approx for the manufacturer to change the bicycle groups name.  Phil Johnston can assist Sole Sponsor identify similar recreational ride groups in Sydney, in major country towns and interstate. 

XIII.       If Sole Sponsor wanted to further diversify wearers of the Saeco jersey, Phil Johnston and Sole Sponsor could approach the cycle courier companies in Sydney incl Bonds Express, Fleet Flyers, Crisis Couriers, Mail Call, Fast! offering Sole Sponsor's jersey for say 25% discount off wholesale price eg from $80 for short sleeve to $60.  Contributing $20 towards the cost of a cycle jersey which would be worn for approx 700 working days, whilst delivering a zillion items to office addresses around Sydney’s streets, may be cheap publicity, as theses would regularly be seen by Sydney’s office workers who are notorious coffee drinkers.  Phil Johnston could introduce you to a few long term cycle couriers, and the top half a dozen cycle courier companies incl Bonds Express, Fleet Flyers, Crisis Couriers, Mail Call, Fast!.  One of those companies may be interested in doing a deal with the Sole Sponsor.

XIV.      Several hundred red Saeco jerseys worn by other bicycle groups/clubs across Australia within 2 years at no cost to Saeco Australia.