|
||||||
|
Editor’s note: In December 1st, 2005, The Application for Registration of Expo 2010 Shanghai was approved by the 138th General Assembly of Bureau International Expositions. After its approval, The Application for Registration has attracted extensive attention from all over the world. The Application for Registration is the legal document on the complete implementation program of Expo 2010 Shanghai China, and also serves as the fundamental guideline for the Expo preparation. Therefore, the whole preparation work of the Expo will be the active implementation process on the basis of the Application.for Registration In order to make it more convenient for all sorts of people home and abroad to understand the Application for Registration comprehensively, we hereby publish the abstracts of the Application for Registration on the official website of Expo 2010. The following is the “Application for Registration of Expo 2010 Shanghai 9. Preliminary Commercial Operation Program
Expo.com: The Application for Registration of Expo 2010 Shanghai has attracted extensive attention from all over the world, after its approval on December 1st, 2005 by the 138th representative members’ convention of the Bureau of International Exhibitions. The Application is the legal document on the complete implementation program of Expo 2010 Shanghai China, and also serves as the fundamental outline for the Expo preparation. Therefore, the whole preparation procedure of the Expo will be the active process on the basis of the Application. We here publish the abstracts of the Application for Registration on the official website of Expo 2010, in order to make it more convenient for all sorts of people home and abroad to understand the Application comprehensively. The followings are the “Application for Registration of Expo 2010 Shanghai (Abstract 9)- Preliminary Commercial Operation Program”.
9.1 Principles of Commercial Operation 9.1.1 The Positioning of Commercial Operation The commercialization program of the Expo 2010 shall be conducted according to the Convention and the relevant BIE regulations. The program will provide various services to meet the needs of commercial operation of the Organizer of Expo 2010, the participating countries, international organizations and all the visitors by utilizing the resources of Expo 2010. On one hand, the program will, by means of standard and efficient operations, develop and enhance the value inherent in Expo 2010, to draw more attention and participation from more governments, enterprises and masses throughout the world so as to attain the objective of making contributions to humankind through Expo 2010. On the other hand, certain necessary commercial operation will supply partial financial support for the successful holding of the Expo 2010. 9.1.2 Scope of Commercial Operation Commercial operation of Expo 2010 includes the following main items: l Expo 2010 sponsorship management; l Licensed products management; l Event management; l Ticket sales and marketing; l Venue leasing in the Expo site; l Other commercial operations. 9.1.3 General policy for Commercial Operation Expo 2010 will serve the purpose of promoting social progress and human civilization and observe the following principles in its commercial operation: l Non-for-profit; l Abiding by the relevant articles in the Convention strictly; l Being open, fair and just.
9.2 Institutions for Commercial Operation As the Organizer of Expo 2010, Shanghai Expo Bureau will be in charge of the planning, organizing and managing of the Expo commercial operation and authorize the commercial institutions concerned to undertake specific schemes of operation. All the revenues from the commercial operation will be included in the operating expenditures of Expo 2010. 9.3 Contents of Commercial Operation 9.3.1 Expo 2010 Sponsorship 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. a. Sponsorship levels 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. 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. b. The selection and management of the sponsors 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. l Compatibility with the image of Expo 2010; l Financial potential; l Advertising/PR expenditure worldwide; l China affinity/extent of internalisation; l Interest in becoming Expo 2010 sponsors. 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. c. Benefits for and services of 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. 9.3.2 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. a. Business models of licensed product management 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. b. The selection of 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. c. Quality management 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. 9.3.3 Event Management Event management is the commercial operation in which the Organizer uses activities related to Expo 2010 as resources to carry out market development and gain profit from it. Event management is closely related to all other aspects of the commercial operation and will be carried through the planning and implementation of Expo 2010. On the one hand, event management is not only an important means to promote the concept and image of Expo 2010, but also an important opportunity for the whole society to participate in and pay close attention to the Expo. The range and variety of the events, both in scale and content, will provide a platform for enterprises of various scale and type to participate in the Expo apart from the Expo 2010 sponsorship. On the other hand, the profits gained from the event management is helpful for the Organizer to compensate for the fund invested in the events. Therefore, after taking previous Expo experiences into consideration, the Organizer redefines the third original category of the Expo 2010 Sponsorship as a seperate Event Sponsors (for example, to name the event after the sponsor). This will encourage more enterprises to participate in the preparation and implementation work of the Expo, make Expo 2010 more splendid, and more attractive to the visitors. The events of Expo 2010 will consist of pre-Expo events and Expo events. Pre-Expo events aim at establishing the Expo brand and promoting the awareness of Expo 2010, with the ultimate goal of attracting participants, sponsors and visitors. Pre-Expo events include a variety of domestic and international promotion events and thematic activities. The promotional events refer to all events related to the Expo or its preparation. Thematic activities refer to those concerning the theme of the Expo. Meanwhile, Expo events are organized to enrich the content of the Expo, including cultural events, festival events, forum of all types of themes and rewards presentation events. 9.3.4 Ticket Sales and Marketing Ticket sales promotion is the most important source of the gross income of the business operation. It is one of the important indexes to final measurement of success of the Expo. Ticket promotion is an integrated project that requires the coordination of various departments, technology support and multi-sales channels. Hence, incorporating elements of various other plans and departments is extremely important to the successful execution of the event management plan. Notably, “visitors” should always be at the heart of every single detail of the plan in order to generate the best Expo experience. a. Classification and pricing of the tickets Tickets can be divided into daily tickets, weekly tickets, quarterly tickets and night tickets. The organizer will set the price of all types of tickets by taking the international pricing standard and the actual situation of China into consideration. b. Sales strategy The Organizer preliminarily designs the discount and other rebates for various types of tickets as follows in order to advocate the idea of “the earlier you buy the ticket, the less you will pay and the more you can experience the Expo”. At the same time, to encourage mass purchase and take good care of the interest of special social groups, the Organizer will design different preferential prices for different visitors. c. Organization and promotion of the sales Tickets will be distributed through three main types of channel: ticketing agents, direct sales through Internet and on-site sales. Ticket sales promotion will take advantage of pre-Expo events and the awareness developed by the marketing of the Expo 2010 brand. Since the expected visitors of Expo 2010 would be of large quantity, and the presale period would start 2 years ahead of the Expo, the Organizer would establish well-functioned computer network of sales control system and closely connect it with the information system of on-site management and visitor consultation in order to guarantee the consistence between ticket sales and on-site management. 9.3.5 Ground Leasehold Venue leasing in the Expo site The commercial venue involved in the plan refers to all venues used for food and beverage (as well as retail and others) business within the enclosed area of the Expo site. According to the site plan, an area of around 100,000 m2 will be available for catering to services, shopping and other commercial services for participators and visitors. During the Expo, rich and multi-layer services of food & drink and recreation within this ground will offer greatest convenience for both the participators and visitors of the Expo. To meet the great demand on food & drink and shopping possibly brought by the future flow of people in the Expo site, business ground is divided into two large sections: one for food & drink and the other for shopping. The former is estimated to command an area of 820,000 m2, on which there would be characteristic restaurants, gourmet food square, snack bar, fast food booth, cafeteria, teahouse, dessert booth and large restaurants; the latter is estimated to command an area of 180,000 m2, on which there would be various retailers of licensed products, speciality shop and convenience stores. 9.3.6 Other Items of Business Operation Apart from the above-mentioned things, the business operation of Expo 2010 also includes Expo commemorating postal collections and other items.
9.4 General Schedule of Business Operation The selection of the partners and the senior sponsors for Expo 2010 sponsorship will start from the beginning of 2006 and finish in December, 2009. The cooperation with the partners and the senior sponsors will last till the end of the Expo. Licensed product management will start from the beginning of 2006, run through the whole process of the preparation and the hosting of the Expo, and possibly go on as a brand management project after the close of the Expo. The pre-Expo activity management will start from the beginning of 2006, and last till the opening of the Expo; the Expo activity management will run through the duration of the Expo. The sales of the tickets will be divided into three stages: from May 1st, 2008 to April 30th, 2009 will be the pre-sales to companies; from May 1st, 2009 to April 30th, 2010 will be the pre-sales to the general public; from May 1st, 2010 to October 30th, 2010 will be the on-site sales. The acquisition of commercial venue and relative operational work will start from 2008 and last till the end of the Expo.
|
