Marketing Plan

Expo 2010 sponsorship will constitute an essential part of the commercial operation and its revenues will constitute an important part of the total revenues of the commercial operation.

Expo 2010 sponsorship plan has a two-level structure: partner level and senior sponsor level. The design of the structure not only guarantees the inflow of funds to Expo 2010, it also provides opportunities for enterprises of different levels to participate in the Expo. Each enterprise will receive benefits that correspond to the amount it has contributed to Expo 2010.

Partners are the sponsoring enterprises at the highest level in the sponsorship system of Expo 2010. Partners provide such support as promotion, cash, products, service and technology etc.. Besides, it will also become the collaborator of the Organizer in their own sector in the preparation of Expo 2010. As returns, partners will enjoy the privilege of market promotion awarded by the Organizer at a global level, exclusive commercial right in certain areas and the right to become exclusive suppliers. Senior sponsors are the sponsoring enterprises next only to the partners. They can give support in promotion, cash, substance, service and technology, etc. As returns, senior Expo sponsors can enjoy the privilege of market promotion awarded by the Organizer in certain areas, exclusive commercial rights in stipulated areas and the right to become the exclusive suppliers appointed by the Organizer.

Besides cash, sponsoring enterprises may provide sponsorship to Expo 2010 in the form of VIK (value in kind), VIK includes products, service and technology and is needed by Expo 2010. The use of VIK can help reduce the payout. In principle, Expo 2010 will accept VIK, not exceeding 40% of the cooperation cost. However, revenue reduction brought by the acceptance of VIK should be calculated. The reduction proportion is approximate 25% of the VIK original value based on the experience of large-scale events sponsorship.

Sponsorship revenue will be collected in installment in line with the cooperation terms with the enterprises. Cooperation fee depends on the recognition of the enterprise to Expo 2010 brand and the business amount possibly to be obtained from the preparation and holding of Expo 2010. Therefore, cooperation fee can be directly related to the time the enterprises are allowed to use Expo 2010 brand and the duration of cooperation with the Organizer. The longer the time, the more the revenue. Actual revenue will be determined by contractual time with the enterprises after the start up of investment attraction. Sponsorship revenue is detailed as follows from early 2006 to May 2010.

	Partner	Senior Sponsor
Number	10	15
Sponsoring fees (million RMB)	200	81.5
Subtotal (million RMB)	200	122.3
VIK (million RMB)	800	489
VIK reduction million RMB)	200	123
Add up of practical revenue (billion RMB)	1.8	1.1
Total of practical revenue (billion RMB)	2.9

As the organization of Expo 2010 requires a wide range of products, service, technology and financial support, sponsoring enterprises shall be selected from many important enterprises in different industries. The Organizer will evaluate the enterprises concerned according to the following standards which are not exclusive.

Any products, service and technology involved in Expo 2010 sponsorship shall be compatible with the spirit of the Expo and in accordance with the requirements of preparation and implementation of Expo 2010 and the market development principles.

The Organizer will set up early warning mechanism and risk guard mechanism in order to prevent and control the risk in the Sponsorship Plan operation. Should there be any discrepancies between the practice and the above-mentioned standards, the Organizer shall have the right to discontinue the relevant rights the sponsor businesses concerned would enjoy, even after they have been entitled as the Expo partners or senior sponsors.

The Organizer will ensure that each sponsor receives sufficient rights and benefits that correspond with its sponsorship investment. The greatest sponsorship value comes from exclusive marketing and commercial rights, which will include the use of name and logo of Expo 2010, corporate pavilion building rights, sponsors club, ticket discount, priority in event sponsorship and Expo 2010 on-site rights. In addition, the partners of Expo 2010 enjoy the priority to establish corporate pavilions, but the expenses of pavilion building and operating should be responsible by partner enterprises.

The core sponsorship value of Expo 2010 comes from exclusive marketing rights and commercial rights. Generally speaking, there will only be one sponsor in each industry. Industries represented by sponsors in higher sponsorship level cannot be represented by those in lower sponsorship level. The higher the sponsorship level a sponsor is in, the more exclusive rights it enjoys. The exclusivity well embodies the precious value of the Expo 2010 sponsorship and creates marketing opportunities that will elevate the competitiveness of each sponsor.

To ensure the rights and interests of the sponsor businesses and safeguard the image and reputation of the Expo, the Organizer will fulfill the promise to the sponsor businesses according to the service programs submitted by the sponsor businesses, and the services they will provide should include those of pre-Expo period and those during the Expo period. 8.3.2 Licensed Product Management

Licensed product management plan refers to the management of enterprises that have been granted a license by the Organizer to manufacture and sell goods with the symbols of Expo 2010, including the name, emblem and mascot. In paying royalty fee to the Organizer, licensed enterprises provide financial support to the preparation and organization of Expo 2010.

The development of licensed products shall focus on the theme"Better City, Better Life", and accord with the concept of Expo 2010, at the same time, in order to maintain the reputation of Expo 2010, product quality has to be strictly controlled by the Organizer. The products range will cover more than ten categories, including household necessities, apparel, fashion articles, stationery, gifts, media products, software, food, etc. It is going to be complete based on the changes in the market. The majority of such products will be designed for daily use to ensure that more tourists may experience Shanghai Expo through the licensed products. Others will be designed as souvenirs and collections to satisfy the requirements for collection of the tourists and other consumers.

Licensed product management consists of domestic licensing (the mainland of China) and international licensing (outside the mainland of China). In considering various factors such as financial condition, human resources and geographical location, the Expo Bureau will directly appoint domestic licensed enterprises and appoint regional licensing agents for the acquisition of international licensed enterprises.

The selection of licensed producers, distributors and agents will be carried out by the Organizer in an open, fair and just way. The enterprises will undergo thorough examination on their ability in production and designing, financial situation, marketing capacity and their efforts in environment protection during the course of selection in order to ensure that all the licensed enterprises and agents are highly qualified.

Since the licensed products cover miscellaneous categories and are closely connected with the life of the consumers, a strict and perfect quality control system has to be established. Therefore, in accordance with the features of these trades as well as the relative regulations, the Organizer will appoint professional quality control department to carry out the third-party management over the environment and process of production and management as well as the product itself in order to guarantee that the licensed products and services will be in conformity with the concept and image of Expo 2010.