An E-Mail from Jody Victor about Quixtar

Thursday, December 31, 1998

I wanted to send you all a front to back synopsis of the e-biz project. It is important that we all are on the same page.

A-Corp's North America's e-commerce venture is under development, so some of the information in this update could change. Also, because there have been many rumors circulating about ANA e-commerce, you should only rely on this update and future communications from me as your source of information. The following information relates to the e-commerce-based opportunity that begins on 9/1/99 and should not be used to describe the current business.

The History

The e-commerce concept originated in discussions between A-Corp's North America management and the ADA Board and Growth Committee, and was refined further with these groups and other field leaders.

The Company

The e-commerce venture is envisioned as a new company in these ways:
Started by the founders of A-Corp
Sharing the same Sales and Marketing Plan
Featuring many of A-Corp's high-quality products
The new venture will include additional revenue streams, and launch date is September 1, 1999. This new company will not be launched with an Initial Public Offering, as it doesn't make good business sense in today's volatile economy, nor is there enough time to do an IPO by 9/1/99.

The Name

We have already registered many domain names and continue to register names. We will soon announce the official name of this e-commerce venture.

The Development

The e-commerce venture has the full commitment of the entire ANA organization, and work is under way. In addition, three areas -- Information Systems, Project Management and Creative Development -- were combined into a unified e- commerce development team. This team -- the Internet Business Group -- has the skills and expertise required to design and build the e-commerce venture, and will work hand-in-glove with respected external technology resources. We have evaluated many technology firms to partner with us on e-commerce and have narrowed the list to a small group of companies. In fact, to make our e-commerce as exciting and multi-dimensional as possible, we will be working with multiple, major technology firms. (These alliances will be announced in the coming months.)

The Communications

A special "pre-launch" Web site is targeted to go on-line in early 1999. It will be one facet of a total communications campaign now being developed.

The Basics

Here is an overview of the e-commerce venture:
a. Primary objectives:
Present a strong, contemporary image.
Help attract new and more people -- independent business owners, members and clients -- to help you grow your business. (Members essentially will be preferred customers who do not participate in the Sales and Marketing Plan, but who will buy products at a discount and receive significant member's benefits.)
Help keep more of these people -- to further the growth of your business.
Sell more merchandise -- to bring you more revenue.
b. Qualities:
For members, ANA e-commerce will be like a club with special privileges ... convenient ... fun ... a consistent experience ... easy to navigate ... exclusive benefits ... product-related tips & techniques ... answers to questions ... special offers & promotions ... no paper required ... "one
cart" shopping ... automatic product fulfillment ... access to family-friendly Internet Service Provider & free e-mail.
For independent business owners (IBOs), ANA e-commerce will link to the Sales and Marketing Plan and provide additional business-related services. The site will provide a standardized (not IBO-customized) merchandising presentation.
c. A-Corp based merchandise:
Selected core line products, catalog merchandise and services with Internet access.
Other services that can be accessed on the Internet (e.g., travel, financial services).
d. Store/brand partners criteria:
Strong, credible and recognizable ... North America in scope ... outline ordering capability ... Y2K-compliant ... quality distribution ... high-level customer service. 12-100 partners are envisioned at this time. As with current catalog merchandise, PV/BV compensation will be lower than that of core line
products.

The Description

If you're asked about this new e-commerce venture, the appropriate response is: "This is an innovative new company and new opportunity started by the founders of A-Corp. They believe this is the kind of enterprise perfect for the 21st century and the age of the Internet. "This new opportunity will share the proven, time-tested sales and marketing plan used in the business -- a plan that is the standard by which all others in the industry are judged. "Many of the famous, high-quality products with high consumer loyalty found in the business will also be available through this e-commerce venture."

In Summary

The e-commerce venture will not be another me-too virtual mall with hundreds of stores, but:
A unique digital destination with this innovative combination of features:
exclusive products & select shopping partners
cool benefits for members
valuable management services
and an enhanced opportunity for independent business owners.

A special note to remember is that we are establishing the first ever membership business with PV. A-Corp is a manufacturer tied to a distribution network of Members & IBO's.

We Are Member Driven!

SOSIU

Jody