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Company X Executive Summary

Eighty-five percent of consumers research purchases online, and then sometimes or always make those purchases offline.[1]

           More and more consumers are depending on the Internet to research products before making final purchases, which in most cases, occur at local retail stores.  As the popularity of computers, interactive TV, and Web-enabled wireless devices increase convenience, “pure-play” Web merchants, those Web sites without brick and mortar outlets, will be more and more challenged to capture sales that are influenced by the information services they provide. The information services that pure- play Web merchants and content sites provide contribute to purchases made in off-line channels.  Perhaps most important, pure-play Web merchants do not currently receive any revenues on sales they influence. 

           Company X’s patent-pending technology and infrastructure allows the tracking of sales and product research consumers conduct online. Our services enable merchants, manufacturers and Web sites to track and measure online influenced sales across multiple channels. 

           Web-impacted spending will increase from $153 billion in 1999 to $832 billion in 2005[2]

           Jupiter Communications estimates that online consumers will spend in excess of $632 billion as a direct result of research that they conduct on the Web.  In 2005, pure-play Web merchants will be responsible for $200 billion in direct sales, but they will lose out on a market more than three times that size in the $632 billion in sales that they will influence.








           Besides sales and influence, the market increases: “Customers who purchase in multiple channels appear to spend up to 30 percent more than their single-channel counterparts.”[3] Jupiter estimates that 68 percent of online shoppers use the Web not only to purchase online, but also to research purchases made at physical stores.  Those merchants that can track sales and information across the many channels of distribution will be most able to accurately assess their investment in their most lucrative distribution channels, leverage them and thereby most efficiently reach and sell to their customers and increase loyalty.

           Customers are remaining loyal to a single company as they move among channels, completing their purchases with the company’s off-line channels twice as often as purchasing from an off-line competitor.[4]  

[1] Yankee Group, Online Retail Strategies Report, Vol. 2, No. 3—May, 2000

 [2] Jupiter Communications, June, 2000, Online Influencing Off-line, The Multichannel Mandate, Page 15

[3] Jupiter Communications, Multichannel Retail: Infrastructure Strategies to Maximize Customer Value, Page 2

[4] Jupiter Communications, Multichannel Retail: Infrastructure Strategies to Maximize Customer Value, Page 4