Killara NSW 2071
phil.johnston@cba.com.au
9513.9532 work ph
0404 014.725 mob
9498.3684 home ph
The Marketing
Manager
Saeco Australia Pty Ltd 
6/87 Newlands Road
Reservoir 
Dear
Sir
* Invitation
for Saeco
(i) build upon extensive exposure Saeco has
gained through sponsoring international cycling
(ii) create a niche in the burgeoning
recreational bicycle sport in
(iii) benefit from cyclists penchant with
visiting cafes, by releasing a distinctive red Saeco club jersey with an
initial order of 75 jerseys purchased by www.Muggaccinos.com
* When
Muggaccinos' cyclists visit over 50 different cafés on Sunday
rides in Sydney, wearing Saeco jerseys, a seasoned cyclist would
distribute a Saeco marketing card to the café
* By promoting a Saeco club jersey on www.Saeco.com.au, up to 20 different
bicycle clubs/groups across
1.
Background
Muggaccinos bicycle group has existed for 10 years. Its website has >33,000 Hits to the
Home Page (counter at bottom Home Page) and many for to
ride schedule pages.
2. Why
align Saeco coffee
equipment with cycling?
The
Australian Financial Review for 6 Jan this year carried a front page heading
"Melbourne measures business cycles in lycra " which 'inter alia' contends that
cycling has replaced golf ".....in terms of participation. It
is not as time-consuming and a bit more collegiate and social".
Cycling is one of the few sports which is materially growing
in numbers with more bicycles sold than automobiles. The Lance factor due to a record
7 Tour de France victories has particular influenced a resurgence
in road cycling.
3. Saeco
is a major name in European cycling
In the 1990's the
Saeco cycle team was famous for Mario
Cipollini who won 4 consecutive stage wins in the 1999 Tour
de France. The Saeco team won the Giro
d'Italia in 2003 with Gilberto Simoni,
and in 2004 with Damiano Cunego.
The Saeco company didn't prolong that sponsorship for 2005, and that
team was merged with the Lampre team, forming Lampre-Caffita. However, now Saeco Romer's Hausbäckerei AG has become a successful
European team with Saeco well-known amongst Australian road cyclists.
4. Saeco
Australia can take advantage of Saeco Romer's
international notoriety and create a niche in the
burgeoning recreational bicycle sport in
This letter invites you to design a Saeco jersey,
with two minor sponsors’ logos, which are local to the ride club group ordering
a supply via your website.
As explained in item 8 below, Saeco
Material synergies exist for a successful road cycle group which
has a name identified with coffee to launch a cycle jersey for Australian
clubs/groups which is synonymous with coffee, thereby –
(ii) further aligning Saeco
with cycling in
(i) cashing-in on the substantive marketing costs Saeco has expended
at very little expense.
As item IX in Annexure C "Benefits to Saeco" notes, I am prepared to assist
you source other recreational cycle groups in other cities throughout Australian
if you want to embark upon a similar arrangement of cycling clubs/groups which
frequent cafes to choose a Saeco team jersey as their club jersey bearing their
club name.
5.
Description of an Australian
Saeco jersey
90% of the jersey would be the distinctive Saeco red with the Saeco
logo. Across the top of the back for the
initial order of 75 jerseys would be Muggaccinos.com in dark
brown. Across the bottom of the back would be KOMpm.com
in black.
I haven’t approached any shop, however, Hornsby Cycles and Thornleigh Cycles
are preferred as –
(A.) Muggaccinos have purchased
bikes from them; and
(B.) Hornsby is
central to Muggaccinos ride starts.
I propose that each jersey also display a small logo of a local cycle shop, and
another of the dominant brand the shop sells eg Giant or Trek etc. That jersey template could then be used by
other clubs and ride groups to similar install the logos of their local bike
shop and the bike brand it stocks.
6.
A joint Saeco/Muggaccinos marketing card
Road
cyclists are passionate about encouraging more adults, particularly women, into
road cycling. This invitation to you also entails seasoned Muggaccinos cyclists distributing 2,000
marketing cards a year which display ‘inter alia’ a Saeco logo,
its 'phone number and website, as well as listing www.muggaccinos.com – see
Annexure “A” “Specification for
business card size marketing card” [1 pg].
I would ensure that on
upcoming Sunday rides, selected Muggaccinos spokespersons, wearing Saeco
jerseys, distributed over the next 12 months marketing cards to each of at
least 40 cafés on the outskirts of Sydney. The remainder, being >1,800
cards, would be distributed to prospective cyclists extolling them to check out
www.muggaccinos.com site.
To elaborate, one of the seasoned Muggaccinos
cyclists would politely hand over a marketing card to the attendee in cafes and
civilly invite them to ‘phone you if they were considering a change of
equipment. Evidencing a café full of well behaved cyclists in discinctive
red Saeco jerseys should be a catalyst to motivate some cafés to ‘phone you for
a quote.
Our cyclists have made a hit at more than a few of the cafes we visit,
such as The Bridge Café, 2/80 George St Windsor
and Aldos Pizza.
Muggaccinos have gone on 3 or
4 long weekends away each year staying at Bundanoon, Cessnock, Gloucester,
Picton, Mittagong, Bowral, Wollombi, Patterson, Dungog, Kiama, Berry, Kangaroo
Valley and Jamberoo. So we could distribute Saeco/Muggaccinos cards at
cafes on Nosh Stops on future cycle Weekends Away.
If you favoured it, I would e-mail you each month an updated schedule
of:
* cafes
visited
* visit
dates; and
* name(s) of
staff at cafes that marketing cards were given to.
7.
Not all cyclists are welcome at some cafés due to thoughtless behaviour
You may be aware that not all café owners appreciate cyclists visiting
their cafes. I understand why. Pattisons Patisserie on
Mona Vale Rd, St Ives has banned a racing cycle club.
Not unsurprisingly, cyclists who commit the following sins do not endear
themselves to most cafes:
(i) making too much
noise; or
(ii) chewing their own snack
bars in cafés.
Our regular cyclists are on
the lookout not to allow rookie cyclists amongst us to commit the above faux
pas. Muggaccinos has never experienced a problem at a café
because we don’t commit (i) to (ii) above. Visiting favourite cafes is a feature of Muggaccinos’
rides.
Annexure “C” [1 pg] lists the “11
Benefits to Saeco Australia”.
Should you
accept this invitation, I would insert a large Saeco logo at Nosh Stops .
8.
Quotations to manufacturer 75 jerseys from 4 well-known suppliers
Should
you opt to have the same manufacturer of the Saeco Romers jersey supply orders
from Australian bicycle clubs/groups (without Romers but with their club name),
I would not pay –
* over $70 for short sleeve; and
* over $80 for long sleeve.
ProBike is a large wholesaler in England. ProBike is presently selling the 2005 Saeco Romers jersey for AUD$42.53 plus postage.
Earlier this year I
have e-mailed the following manufacturers seeking indicative quotes on an order
of 75 jerseys [50 short sleeve and 25 long sleeve] in 4 colours made of
their best material.
Netti Jaggad Cannibal Ground Effect
Body Torque
and Hot
Designs
Enclosed
within this letter, and attached by e-mail, are quotes from Netti
(Size Chart, Terms & Conditions),
Cannibal (Digital Price List), Hot Designs and Body Torque (Art &
Design Requirements, FAQ, Client Feedback, Template), together with an Excel file which
summarises aggregate cost for an order of 75 jerseys and
per jersey costs for the four manufacturers which have provided a quote.
Should you opt to have the
dedicated Saeco jersey manufactured in Australia Australia
9.
My credentials
I
have worked for Commonwealth Bank for 30 years. I presently write credit
papers to lend between $20m and $100m for urban infrastructure. I have an
undergraduate degree and a master degree in finance. I am adept at
documenting agreements so that all parties know their rights and obligations.
10.
Risks of the sponsorship
There
are over 30 different risks which a bank evaluates before embarking on a partnership
venture. These include credit, market, professional indemnity/3rd
party liability, and reputation risk. Reputation risk is about the only
pertinent risk. The calibre and track-record of the management associated
with any business venture is a high priority. I invite you to meet a few
Muggaccinos cyclists as they are stable individuals. You could also meet
or phone a few of the blind cyclists who appreciate the bonhomie extended to
them whilst riding in
11.
2nd cycle website for KOM
Climbers
12. Summary
I
invite Saeco Australia to cash-in on the substantial marketing budget
expended by Saeco throughout Europe by sponsoring Muggaccinos cyclists.
Saeco wouldn’t pay the 2 year $1,000 Major Sponsor once-only fee for 75 Saeco jerseys, plus the cost of 2,000 marketing cards pa, until all 7 conditions precedent in Annexure “B” are
achieved. Saeco would then receive the 11 benefits listed in Annexure “C”.
In 5
years there could be hundreds of Saeco cycle jerseys worn by recreational
cyclists from cycle clubs and bicycle
organizations across
I would appreciate your ‘phone call to me (02) 9513.9532 wk to discuss this offer.
Yours
faithfully
Phil
Johnston
Muggaccinos Cycle Group