REGISTRY OPERATOR’S PROPOSAL
BUSINESS PLAN
Commercial Connect, LLC
October 2, 2000
1418 South Third Street
Louisville, KY
40208-2117
(502) 635-7979 – (502) 636-9157
Jeffrey S. Smith, President
BUSINESS PLAN NUMBER: 00-1009C
THIS BUSINESS PLAN IS CONFIDENTIAL AND THE PROPRIETARY
INFORMATION OF COMMERCIAL CONNECT, LLC., AND MAY NOT BE DUPLICATED OR RELEASED
TO OTHERS WITHOUT THE EXPRESSED WRITTEN CONSENT OF COMMERCIAL CONNECT, LLC..
TABLE OF CONTENTS
7.0
GENERAL BUSINESS OPERATION GUIDELINES.
8.0
MANAGEMENT AND ORGANIZATION
1.0 MISSION STATEMENT
To create a new domain
name avenue for e-commerce which is immediately clear to Internet shoppers,
customer service oriented to registrars, and an aid in Internet structural
integrity and stability.
2.0 STATEMENT OF PURPOSE
Commercial Connect, LLC. was formed as a startup top level domain name registry formed by a partnership of Computer Analytical Systems, Inc. and Simon Property Group, L.P. with the intent of establishing and supporting new top level domains (TLDs) .mall, .shop, and .svc. Commercial Connect, LLC. seeks ICANN authorization for these new extensions to be worldwide generic top level domains for the purpose of electronic commerce on the Internet.
With the breakup of a government approved monopoly, Computer Analytical Systems, Inc. dba CASDNS under CORE became one of nine (9) companies in the United States initially taking registrations for top level domain names. Of these nine companies, Network Solutions, Inc. (the previous monopoly) was the only company actively marketing generic top level domain name services with the established extensions .com, .net and .org.
With the phenomenal and ever increasing growth of the Internet, it has become clear that the three existing generic global top level domain names will not be sufficient in and of themselves to efficiently support the naming needs of the rapidly expanding electronic commerce of the World Wide Web. Commercial Connect, LLC. supports a hierarchy of generic TLDs to logically classify domain names according to their purpose and function, and specifically was formed with the intention of serving as the registry for the top level domain names of commerce on the web.
While many companies are struggling to get equipment and software in order to propose a new registry, Commercial Connect, LLC. is ideally positioned by virtue of the resources brought by the partnership of Computer Analytical Systems, Inc. and Simon Property Group, L.P. to implement, support, maintain and market a registry and obtain a large market share in excess of the 12,000 domain names registered daily.
Equipment and staff are already in place to provide these services.
This venture, very similar to the breakup of AT&T with long distance, where companies such as MCI and Sprint who were quick to jump into the large long distance market, has thrived in today’s market. Similar experience has been enjoyed by the introduction of registrar competition into the .com, .net and .org registry. Now it is the domain name extensions themselves that have become the monopoly.
Commercial Connect, LLC. intends to capture part of the geometric growth curve of the Internet by offering its customers easy access, diligent support, quick response and competitive pricing, which can be achieved by minimizing costs, effective use of technology and experience in customer support.
Commercial Connect, LLC. will have a unique position in that it is a partnership of two companies that together combine all the elements necessary to establish and maintain through the long term, a registry for the top level domain names proposed. Computer Analytical Systems, Inc., a corporation that is already successfully established in the field as a domain name registrar as well as an ISP, owns the infrastructure and Internet connectivity required for a registry. Simon Property Group, L.P. is a corporation with global geographic presence in business and in commerce with unlimited technical and financial resources, and vast experience in electronic commerce and aggressive business management. Both companies bring a firm commitment to the promotion and facilitation of electronic commerce on the web.
Sales projections for Commercial Connect, LLC. are shown in the accounting appendix to follow.. All sales projections are based on very conservative estimates drawn from a return based on advertising. The return is based on the number of domain registrations to each publication, and then multiplied it by a factor considered reachable with these ads. These estimates are neither binding nor guaranteed accurate.
The
goals of Commercial Connect, LLC. are quite simple. Commercial Connect, LLC. is
preparing to become one of the largest providers of domain name registrations
in the world. With no physical
boundaries, Commercial Connect, LLC. can market to the entire world. Commercial
Connect, LLC. will be targeting the broader segment of the market desiring establishment
of a long term relationship with multiple outstanding registrars. Innovative
marketing plans and pricing contracts have been designed to retain customers
and reward them for additional referrals. Commercial Connect, LLC. hopes to
gain the reputation of a service oriented registry and capture a large share of
the Internet domain names registered for the purpose of commerce. In addition, Commercial Connect, LLC. wants
to be an asset to the Internet, shareholders, its community and its employees.
3.0 EXECUTIVE SUMMARY
3.1 Concept
Formation
of a top level domain name registry to seek authorization from ICANN to
establish and support new top level domains (TLDs) of .mall, .shop, and .svc.
3.2 Market
A
report by The Standard has suggested that while stock markets have been
unsteady, all Internet economy indicators continue with remarkable growth. Specifically, the total number of domain
names ending in .com has been increasing at a rate of over 100% per year. In
1999, on average, over three million web pages were created daily, and 5.6
million new domain names were registered. Of these 5.6 million new domain
names, 35% were .coms. Although much of the focus on this market has been with
companies such as NSI, Register.com, and CASDNS that register .com, .net, and
.org domain names, Commercial Connect, LLC. is uniquely positioned to clearly
differentiate itself and is positioned to be the first registry in this arena.
3.3 Successes
The
launch of Shared Registry System has been a huge success. Since offering the
competitive registration of .com, .net and .org in July 1998, the Internet
community has embraced the new registry system. All major media in the United States have tended to treat the
issue with the highest regard, and regularly run stories on the issues.
3.4 Management and
Leadership Origins
The
managers and leaders who run existing companies that will come together to lead
and manage Commercial Connect, LLC. are listed below. The current management team of Commercial Connect, LLC. combines
top quality consulting, Internet and technology experience as well as the
business and commerce expertise of a large corporate entity.
Computer
Analytical Systems, Inc.
Jeffrey S. Smith
President, CEO and Founder, Computer Analytical Systems, Inc.
dba BestRegistrar.com, CAS-Com Internet Services, Inc. and CASDNS, Inc.
As President and Founder of Computer Analytical Systems, Inc.
dba BestRegistrar.com, Cas-Com Internet Services, Inc. and CASDNS, Inc.,
Jeffrey Smith brings to Commercial Connect, LLC. extensive education and
experience. He has previously worked as an Internet entrepreneur, managing systems integration, IT consulting
specializing in e-commerce, ERP (Enterprise Resource Planning) implementation
as well as EDI (Electronic Data Interchange) and CRMT(Customer Relationship
Management Technologies) with multiple companies.
Mr. Smith founded Computer Analytical Systems, Inc. over
twelve years ago. With his leadership and initiative, CAS-Com Internet
Services, Inc. an Internet Service Provider, and CASDNS, Inc., an accredited
ICANN top level domain name Registrar, were started. Mr. Smith has over nineteen years experience in the information
systems and business management fields.
In addition he has consulted for various telecommunications and high-level
technology companies on Internet related issues for the past eight years.
Simon Property
Group, L.P.
Melvin Simon
Co-Chairman of the Board, Simon
Property Group, Inc.
A native of Brooklyn, New York, Melvin Simon is Co-Chairman of Simon Property Group,
Inc. Simon Property Group, Inc. is the largest publicly traded retail real
estate company in North America.
Mr. Simon also serves as Co-Chairman of the Board of Melvin Simon &
Associates, Inc., which until the 1993 formation of Simon Property Group was
the nation's second-largest developer and manager of shopping centers.
Mr. Simon attended the Bronx High School of Science and the City College of New
York, where he earned a B.S. degree in accounting and an M.B.A. with an
emphasis on real estate. He came to Indiana while serving in the United States
Army, when a transfer brought him to Fort Benjamin Harrison in Indianapolis.
Following his discharge from the Army, and prior to creating Melvin Simon &
Associates in 1960 with brothers Herbert and Fred, Mr. Simon worked as a
leasing representative with the Albert Frankel Company, an Indianapolis
developer of strip shopping centers.
Mr. Simon's diversified business interests include co-ownership with brother
Herbert of the National Basketball Association's Indiana Pacers.
Mr. Simon is a Trustee of both the Urban Land Institute (ULI) and the
International Council of Shopping Centers (ICSC). He holds board memberships
with numerous community and civic organizations, and has received many awards
and honors for his involvement.
Herbert Simon
Co-Chairman of the Board, Simon
Property Group, Inc.
Born in Brooklyn, New York, Herbert Simon is Co-Chairman of Simon Property
Group, Inc., the largest publicly traded retail real estate company in North
America. Simon Property Group, Inc. owns and/or manages some of the nation's
foremost retail properties, including: Mall of America (Minneapolis/St. Paul
area), The Forum Shops at Caesars (Las Vegas), Fashion Centre at Pentagon City
(Washington, D.C. area), and Circle Centre (Indianapolis).
Mr. Simon also serves as Co-Chairman of Melvin Simon & Associates, Inc. of
Indianapolis, which before the 1993 formation of Simon Property Group was the
second-largest developer and manager of shopping centers in the United States.
Prior to creating Melvin Simon & Associates in 1960 with his brothers
Melvin and Fred, Mr. Simon attended the City College of New York where he
earned a B.S. degree in business.
Mr. Simon's diversified business interests beyond real estate include co-ownership
with brother Melvin of the National Basketball Association's Indiana Pacers.
A firm supporter of professional, environmental and community groups, Mr. Simon
serves on the boards of directors of numerous community and civic
organizations.
David Simon
Chief Executive Officer, Simon
Property Group, Inc.
Chairman
of the Board, Commercial Connect, LLC.
David Simon is Chief Executive Officer of Simon Property Group, Inc., North
America's largest publicly owned retail real estate development and management
company. Currently he also serves as Chief Financial Officer and Chief
Operating Officer of Melvin Simon & Associates, Inc.
Prior to joining Simon in June, 1990, Mr. Simon was a Vice President of
Wasserstein Perella & Co., a Wall Street firm specializing in mergers,
acquisitions and leveraged buyouts. He was formerly an associate at First
Boston Corporation, also based in New York.
Mr. Simon holds a B.S. degree from Indiana University and an MBA from the
Columbia University Graduate School of Business. A native of Indianapolis, he
is the eldest son of Simon Property Group, Inc. Co-Chairman Melvin Simon.
Richard S. Sokolov
President and Chief Operating
Officer, Simon Property Group, Inc.
Richard S. Sokolov is President and Chief Operating Officer of Simon Property
Group, Inc., the largest publicly owned retail real estate company in North
America.
In addition to his corporate responsibilities, Mr. Sokolov serves as Trustee
and as a Member of the Executive Committee of the International Council of
Shopping Centers. Prior to joining Simon in 1996, Mr. Sokolov was
President and Chief Executive Officer of DeBartolo Realty
Corporation. He was formerly a
Partner and Executive Committee Member at a major Baltimore law firm, where he
specialized in real estate transactions.
Mr. Sokolov earned his Juris Doctorate degree from Georgetown University Law
Center in 1974. He received his Bachelor of Arts degree in 1971 from
Pennsylvania State University.
David Schacht
Senior Vice President and Chief Information Officer, Simon
Property Group, Inc.
David has been with Simon for approximately
three years. He was hired as Director of Application Development and now
serves as Senior Vice President and Chief Information Officer.
During his tenure with Simon, he has been
instrumental in the implementation of a new Leasing System, Payroll System,
Customer Affinity System, Revenue Budgeting System, ShopSimon Portal and has
played a key roll in the development and execution of Simon's digital strategy.
Eighteen months prior to joining Simon, Mr.
Schacht was engaged by Subaru Izusu of America and Conseco as a systems
consultant. David began his career with
Resort Condominiums International in 1984.
During his twelve year tenure with RCI, David's accomplishments included
automation of 20 plus international offices, implementation of a B2B resort
access system, a marketing data warehouse and authoring RCI's exchange/match
algorithm.
Gerald St. Amand
Information Technology/Research
Specialist/Operations Manager, Simon Property Group, L.P.
As Information Technology/Research
Specialist/Operations Manager of Simon Property Group, Inc., Dr. Gerald St.
Amand has diverse expertise in the analysis, delivery, and management of
software methodologies, operational programs and services as well as
innovative, administrative management
designed to meet challenging business demands and a solid understanding of
strategic planning used in integrating highly sophisticated technology
into Management Information Systems
(MIS), Competitive Intelligence
(CI), and Technology Transfer
Applications. Dr.St. Amand has a verifiable background of
success in providing leadership in private and educational sectors.
Dr. St. Amand holds a Ph.D. in Administration in the Higher
Education Program at Indiana University.
After taking graduate courses in Business Administration at Michigan
State University, he earned an M.A./Economics with a minor in Finance from the
University of Detroit (Now University of Detroit - Mercy). He holds a B.S. in Finance from the
University of Detroit, where he was a Fitzgerald Award winner.
Dr. St. Amand is the published author of A
Management Game with Financial Emphasis for Time-Sharing and a book
reviewer for The Accounting Review.
Board of Directors,
Simon Property Group, Inc.
Melvin
Simon, 73
Co-Chairman
of the Board
Executive Committee Member
Herbert
Simon, 65
Co-Chairman
of the Board
Executive Committee Member
Compensation Committee Member
Nominating Committee Member
David
Simon, 38
Chief
Executive Officer
Executive Committee Member
Nominating Committee Member
Richard
S. Sokolov, 50
President
and Chief Operating Officer
Executive Committee Member
Hans C. Mautner, 62
Vice
Chairman of the Board
Executive Committee Member
M.
Denise DeBartolo York, 49
Chairman
and Chief Executive Officer,
The Edward J. DeBartolo Corporation
Nominating Committee Member
Robert E. Angelica, 53
Chairman
and Chief Executive Officer,
AT&T Investment Management Corporation
Compensation Committee Member
Birch
Bayh, 72
Senior
Partner,
Oppenheimer, Wolff, Donnelly & Bayh, LLP
Compensation Committee Member
Nominating Committee Member
G.
William Miller, 75
Chairman
and Chief Executive Officer,
G. William Miller & Co., Inc. and
Chairman, Home Place of America, Inc.
Nominating Committee Member
Audit Committee Member
Fredrick W. Petri, 53
Partner,
Petrone, Petri & Company
Audit Committee Member
Compensation Committee Member
J.
Albert Smith, Jr., 59
Managing
Director,
Bank One Corporation
Audit Committee Member
Pieter S. van den Berg, 54
Adviser
to the Board of Managing Directors of PGGM
Philip
J. Ward, 51
Senior
Managing Director,
CIGNA Investments, Inc.
Compensation Committee Member
4.0 PRODUCT / SERVICE
4.1 Product
Commercial
Connect, LLC. proposes the introduction of three new top level domain names,
.mall, .shop, and .svc. for the exclusive use of Internet domains involved in
the use of electronic commerce. The
existing top level domain .com, originally intended for this purpose has become
too broad in its scope and so generic that it no longer exclusively denotes its
original intention. In fact, the .com
extension has suffered from its popularity more than any top level domain
currently in use world-wide. With over
18 million names registered in the .com domain alone, it has become nearly
impossible to find or improvise an available short descriptive and desirable
name. This difficulty is becoming more
acute daily, and as already implied by the continued geometric growth of the
Internet, will become exponentially more difficult in the future. Twenty and thirty character domain names
have now become common, and quite a disadvantage to their owners. Soon, descriptive names of fifty to sixty or
more characters may be the only option under the present system, putting
domains who are required to use them at a serious disadvantage as users must
correctly type what amounts to a small paragraph into the address bar of a
browser to reach these sites.
In
addition, there are no distinctions between these 18 million companies .com web
addresses; there is no logical structure behind the intention of the millions
of web pages. By offering a set of
alternative commercial extensions, the mechanics of global commerce via the
Internet will be greatly enhanced.
The
proposed individual domain names are:
.shop
Both a noun
and a verb, this extension is understood in many languages. We propose that this name be used for
electronic commerce sites that actually provide on-line shopping and ordering,
whether the site is associated with a physical store or not.
.svc
Intended for e-commerce sites offering a service. A company who has diversified interests in
many services and products would find it beneficial to register a .shop or .svc
extension for the purpose of selling their products, thus giving the consumer
an easy path to purchase.
.mall
The most
restrictive domain of the three, .mall is intended as an umbrella domain under
which multiple .shop and .svc sites may be assembled. It may also be used for the web site of an actual, physical mall
or shopping center. By virtue of
limited usefulness in any other context, this extension could be considered
self-regulating.
4.2 Service
Please refer to the Registry Operator’s Proposal – Technical Plan for a detailed discussion of Registry Services.
5.0 MARKET
ANALYSIS
Commercial
Connect, LLC. will begin to aggressively market its services and obtain the
staff necessary to effectively provide quality customer support the moment
ICANN gives its approval for our proposed new top level domain names.
Commercial
Connect, LLC. is in a unique position due to the fact that its high-end
registry infrastructure equipment and connections are already in place. Commercial Connect, LLC. is located in the
same office building as principal owned CAS-Com Internet Services, Inc.,
Computer Analytical Systems, Inc. dba Bestregistrar.com and CASDNS, Inc. Each company provides Commercial Connect,
LLC. with Internet services and equipment respectively. Low rent, plentiful space for expansion,
along with readily available Internet service and abundant equipment create a
synergy between these three companies.
Commercial Connect, LLC. will obtain additional equipment for its sole
use should this proposal be accepted.
By
all estimates, the market for Internet domain names is growing geometrically
along with Internet users. According to
Business Week, the "Internet craze" is going to provide big
opportunities to entrepreneurs who manage to provide services to a clamoring
clientele. PC Magazine, a highly
regarded bi-weekly periodical with a circulation in excess of one million, has
stated that Internet users are growing at a rate of 160,000 per month. MIT reports that the number of Internet
subscribers is doubling every six (6) months.
The
stability of the Internet is based on the number of highly funded, research
oriented government institutions that have provided the backbone of the
Internet. The Internet started in the
mid 1960's as a Defense Department project called the ARPAnet. Used primarily to support research on packet
switched networks, the Internet has grown through the addition of host
computers and local area networks that provide connectivity to millions of
people. As the ARPAnet grew as a
gateway, the common denominator used to interpret the different layers was
called the "Internet Protocol."
The overall collection of all the networks and host computers is now
simply called the Internet.
With
the growth of the hosts on the Internet, there is an abundant need to group
these hosts. This is where domain names
are used. Domain names are synonyms for
a numerical address or group of addresses on the Internet. We see them daily
when referring to a web site. The
domain name is the name of the computer network or virtual network on the
Internet. An example of this is
“IBM.com.” In order to obtain this
domain name, the company has had to request it from a Top Level Domain
Registrar. The registrar verifies that the name is not in use by others, then
registers the name and charges a prepaid fee per year for a subscription. This means that the customer can use this
domain name for the number of years reserved, and when someone refers to the
domain name they will be directed to their network.
After
it’s subscription expires the customer is charged an additional fee per year to
keep the rights to the domain name. If
the fee is not paid, the name goes into the “available” status and can be
registered by another party.
Network
Solutions, Inc., the former registry monopoly, reported in 1997 that there is
an average of 12,000 domain names registered daily.
The
total registry business brings in $150 million in renewal years alone for the
registry and possibly an additional $150 million for registrars.
For
the most part a commercial organization will presently use the .com extension
to register its company. In a report by
NUI.ie , it was stated that 98% of all of the words in the Webster American
English Dictionary have previously been registered. Since there are only so many combinations of words and over 25
million have been registered, there has been a large outcry from the Internet
Community requesting additional extensions. This could bring the yearly
revenues to $3.2 billion in the year 2001.
While this is an extreme estimate, it is a very attainable goal.
6.0 MARKETING
6.1 Executive
Summary
The purpose of Commercial Connect, LLC. is to become the premier e-commerce domain registry in the world. Its target market is all e-commerce companies currently doing business on the web, and all other retail product and service providers looking to enter the Internet sales market. With its combined years experience in commercial real estate, catering to the retail market and domain registration and ISP, Commercial Connect, LLC. is undoubtedly qualified to provide the latest TLD to the e-commerce market.
The company's major competitive advantage is its immediate ability to leverage retailers
in 25% of the top regional malls in North America, owned by Simon Property Group, and the over 30,000 domain names currently registered through BestRegistrar.com, to register with the new TLD. These actual future registrants, in addition to the enormous network of retail and e-commerce companies already established, put Commercial Connect, LLC. in a position to make the new TLD as successful as possible, and more so than any other company in the world.
6.2 Situation
Analysis
As Internet use increases, so does e-commerce and different web-based ideas for marketing products and services. Conventional e-companies are increasing their ability to serve the public, while the original "brick and mortar" companies all seem to be increasing their Internet presence and expanding the goods and services they offer on the web. With such marked increases in Internet use, e-commerce and conventional business, there is an ever-increasing need for new domain names. In addition to an increased need for names, there is also a need to better categorize sites on the web.
As e-commerce increases, so does the need to not only add new domain names, but to help organize web sites, and help differentiate between e-commerce and other Internet sites and offerings.
With these factors in mind, Commercial Connect, LLC. has come up with e-commerce-specific TLD's in order to become a facilitator for Internet commerce. The TLD's are .shop, .svc, and .mall. Such TLD's will send a clear message to the user community as to the kind of site they are visiting or searching for, and will offer purveyors of e-commerce a new and specific outlet and naming opportunity for their web sites. The joint forces of the Simon Property Group and BestRegistrar.com are in the ideal strategic positions to best manage these TLD's and to market them to companies both Internet and brick and mortar based, who wish to sell goods and services on the Internet.
6.3 Marketing
Goals
Commercial Connect, LLC.'s major goals are:
1. Receive the license to be the registry for. shop, .svc, and/or .mall.
2. Market and advertise to all current and potential e-commerce companies.
3. Increase the number of e-commerce sites on the Internet.
6.4 Marketing Plan
The Year One Marketing Goal for Commercial Connect Inc. is to rapidly accelerate .shop, .svc and .mall into the preferred and accepted vehicles for e-commerce.
It is vital to catapult these new TLD’s into this leadership in e-commerce in a manner that rapidly creates and defines the accepted standard for on-line transactions. Initial momentum is required to prevent other potential TLD’s (ex - .buy) from siphoning off both buyers and sellers as well as becoming a viable transactional alternative to .com
Generating a continuing stream of consumers and individuals sampling, accepting, and embracing the new TLD’s is likely to be the most difficult and vital element of the Marketing Plan. The Internet landscape is littered with excellent, high-concept sites, which failed due to a lack of consumer/individual traffic. The challenge, to get potential buyers to change their established behavior and use the new suffix, .shop, .svc or .mall, is undoubtedly broader reaching and much more difficult than driving traffic to a new site. To be successful the TLD’s must enhance the business model of the participating ”seller” partner sites with sustainable buyer utilization. It is acknowledged that purchase behavior and habits are difficult to change. The transition from telecommunications toll-free “800” numbers (i.e. .com) to toll-free “888”numbers (i.e. .shop) was more difficult and took longer than anticipated. The .shop, .svc, .mall proposition must overcome any such transactional resistance.
Once a critical acceptance point of “marketing mass” is achieved, the new TLD shifts from being a “wanted” to a “must have” Internet address. This is a classic marketing opportunity or dilemma of “which comes first… the buyers or the sellers?” A balanced and calibrated marketing approach is required to ensure that sufficient numbers of buyers and sellers are engaged together in the initial phase of acceptance development. The number of buyers generates the number of sellers utilizing the TLD. Greater numbers of sellers generates buyers who are “sampling” .shop, .svc and .mall as a preferred and more convenient alternative.
Simon Property Group, a COMMERCIAL CONNECT, LLC. partner, provides an unsurpassed reputation and contacts among the world’s largest retailers. This will enable the key initial surge of the new TLD sites so critical to becoming the transactional suffix of choice. Retailers in a current contractual relationship with the Simon Property Group account for $38 billion in sales.
Target Audience
COMMERCIAL CONNECT, LLC. evaluates the .shop, .svc, .mall concept to have substantial and real benefits for both consumer and business-to business e– commerce applications. “Buyers” can and should include both consumers and companies. “Sellers” can and should include both retailers and business-to business organizations.
The breadth of opportunity and potential for the new TLD requires a multiplicity of constituents and target audiences including but not limited to
“Sellers”
-Current transactional consumer and business –to –business sites
-Small business companies
-Bricks and Mortar retailers
-Entrepreneurial and start-up companies
“Buyers”
-Consumers of the entire gamut of consumer goods and services
-Corporate government and institutional purchasers
Existing Registrars
Benefit Profile
COMMERCIAL CONNECT, LLC. will provide tangible, unique and advertiseable benefits to each of the Target Audiences and constituencies of the new TLD.
|
Target Audience –Buyers ( consumer
and corporate) Sellers Registrars |
Benefits Convenience of a
dedicated and specific set address for a transactional domain. Simplicity of net
address for transactions. Dedicated
transactional domain name to reduce and simplify existing .com site. Pre-characterization
of the person (“hit”) as a “shopper”… to be handled differently than as “
information seeker” Specialized site
aggressively promoted in advance to potential customers as a shopping/buying
site. Total new
revenue/profit stream Rejuvenated
interest in registration of site names Aggressive
promotion of a new product they can distribute in partnership with COMMERCIAL
CONNECT, LLC.. |
Research
Upon approval and the contracting of this proposal, COMMERCIAL CONNECT, LLC. will embark on a comprehensive research program and investment merited by the tremendous potential of the new TLD concept . This research will assist in creating a proven and documented approach to ensure its ultimate success.
This research program will include:
on-line and off-line
quantitative and
qualitative elements
multi-continent, multi-national research
all three Target Audience groups(Buyers, Sellers, Registrars)
strategic and tactical issues
pricing elasticity (the .shop address may be sold at a price higher than a .com address)
This research will form the basis of the ultimate Product and Marketing Strategy as well as Creative Development. The research will also be utilized to sell and promote the .shop, .svc and/or .mall address to key retailers and business-to business units.
Marketing Budget
COMMERCIAL CONNECT, LLC. anticipates a preliminary business model in our year one with a marketing budget between $10 and $15 million for the U.S. market. This will ultimately be governed by the research results and the final business model.
Successful marketing of this TDL is absolutely essential. The e-commerce category is crowded and aggressively marketed. Substantial and smart marketing investment will be required, particularly until a critical mass and the acceptance of the new TLD as the transactional standard is achieved.
Communications
Advertising, Public Relations, and Sales Promotion will be utilized aggressively to seat the new TLD as the pre-eminent TLD and standard in e-commerce. All of these communication activities will be executed with Publicis, our marketing partner.
The actual budget allocation between the three Target Audiences (Buyers, Sellers, and Registrars) will be determined by the number, size and profile of the participating “seller” sites at critical points in time. For example, a profile rich in business-to business sites will necessitate a different allocation than a set of predominantly retail consumer sites. The millions of .com sites “happened” in a tidal unguided ground swell. In contrast, COMMERCIAL CONNECT, LLC. will actively brand .shop, .svc and/or .mall.
The communication objectives are two fold : 1) To increase the awareness and preference of the business community for the .shop site for their e-commerce requirements 2) To drive traffic from both consumer and business to the .shop sites.
These objectives will be achieved through a fully integrated and coordinated communication Plan of public relations, advertising, and sales promotion. The multi million dollar budget in Year One will adequately fund these key components. Different messaging will be directed to the three key Target Audiences but unified under a common communication umbrella.
Public Relations (On-line and Off-line)
Public relations will be an important component of the COMMERCIAL CONNECT, LLC. communication Plan for the new TLD. Innovative Public Relations programs will be executed on-line and off-line to our key constituencies. This Public Relations program will first be addressed to our potential “Sellers” and the potential purchasers of these new sites. Once a critical mass of sites is achieved, the Public Relations activities will shift toward a cycle of building consumer and business-to-business traffic.
Advertising
The Advertising programs will focus on the two largest Target Audiences, the “Sellers” and the “Buyers”. As in the program of Public Relations, the emphasis will be shifted as we achieve the critical mass of active .Shop, .svc and .mall sites.
A multiplicity of advertising media will be necessary to achieve rapid awareness, actual “trial”, and preference for the new TLD sites. However, each element will be unified with the same positioning and messaging. A strong call-to-action will be utilized to gain initial trial.