Software Service
for conSumer productS n
Optimize trade planning with
a unified pricing and promotion
application n
Accurately predict key volume and
financial metrics for your brands and
the retail category n
Outsmart the competition by
quantifying competitive activity
against your portfolio n
Enhance retail sell-in success
through comprehensive trade
planning use cases
“We are committed to delivering insights and action plans to help our business teams optimize trade planning and improve overall category performance. We fully expect DemandTec Trade Planning
& Optimization to help us meet these important business objectives.”
Lohr LeSueur
Vice President of Trade Marketing
General Mills
Developing the right trade marketing strategies has evolved into a rigorous and important discipline for consumer products manufacturers. As raw ingredient costs escalate and competitive threats intensify, predicting the relative impact promotion and everyday price activities will have on volume and margin objectives is an essential planning requirement.
DemandTec’s Trade Planning & Optimization software service empowers business managers to forecast promotion and pricing activity in a unified planning environment.
With this powerful capability, manufacturers can develop and predict trade volume and profitability metrics that will help transform the trade planning function and provide a sustainable competitive advantage.
Optimize Trade Planning with a Unified Pricing and
Promotion Application
Virtually all pricing and promotion strategies are highly interdependent and should be based on a common analytical foundation. For example, the volume delivered from an end cap promotion may be drastically understated should it coincide with a 6-month
EDLP buy down. Building a total trade marketing plan that incorporates both everyday price assumptions and promotion tactics results in a more complete planning picture and ensures tighter forecast accuracy.
DemandTec makes unified pricing and promotion planning possible, as all demand coefficients are modeled on the same underlying consumption data. This approach not only provides a consistent set of assumptions for planning purposes, but also delivers a category plan that incorporates all trade activity in a single view.
Accurately Predict Key Volume and Financial Metrics for
Your Brands and the Retail Category
DemandTec’s Trade Planning & Optimization software service delivers documented business planning benefits to consumer products manufacturers and their retail customers. Depending on the user’s defined goals, DemandTec customers have reported the following trade planning improvement metrics: n
Up to 15% increase in promoted volume n
Up to 5% increase in total volume n
Up to 10% decrease in cost per incremental n
Up to 8% increase in retailer margin
While results may vary by category and retail class of trade, DemandTec customers consistently report notable improvements in volume, margin and share.

Software Service
Outsmart the Competition by Quantifying Competitive Activity
Against Your Portfolio
While promotion and pricing strategies present an opportunity to capture volume and share from the competition, the reverse is also true. Competitive pricing and promotion strategies have the potential to erode your brand’s share and margin, offsetting even the best trade marketing plan. To help hedge against anticipated competitive trade activity, it is important to understand in advance the potential financial impact should a competing national brand promote during an important category cycle.
Because DemandTec develops a demand elasticity curve for every item in the category, including national brand competitors and private label, the Trade Planning & Optimization service can quantify the financial impact of competitive trade activity. Business managers can simulate how competitive trade plans will impact their own promoted items, their total portfolio and even the retailer’s entire category. Among other benefits, this preemptive
“war gaming” helps manufacturers build a stronger, more category-centric case during the retail sell-in process.
Enhance Retail Sell-In Success Through Comprehensive Trade
Planning Use Cases
Manufacturers using DemandTec software services have reported a distinct competitive advantage and better performance in their categories. The ways in which DemandTec customers drive success at retail include: n
Gaining consumer demand insights into every item merchandised
within a retail category n
Planning and predicting comprehensive trade events including price
adjustments, ad placement, and display support n
Aggregating multiple trade promotions to assemble a category plan,
and then repredicting that plan in total n
Evaluating trade activity assuming a nested EDLP buydown throughout
a broader planning window n
Improving sell-in by accurately forecasting brand and retailer category results for
the plan, including cannibalization, total promoted volume, and turn volume
Empower Your Trade Planning Teams with the Right Tools to Win
Selecting the right predictive tools is a must-have capability in today’s competitive retail environment. DemandTec’s Trade Planning & Optimization software service leverages the science of consumer demand management to pinpoint optimal pricing and promotion strategies. This powerful predictive planning capability is offered on a turn-key basis for customer account teams and headquarters users to deliver highly effective forecasts that yield documented business results.
Get Started Today
Are you ready to predict better pricing and promotion strategies? Take the next step. For more information, call 888.221.6128
or visit www.demandtec.com
.
About DemandTec
DemandTec (NASDAQ: DMAN) enables retailers and consumer products companies to optimize merchandising and marketing decisions, individually or collaboratively, to achieve their sales volume, revenue, and profitability objectives. DemandTec software services utilize DemandTec’s science-based software platform to model and understand consumer behavior. DemandTec customers include more than 195 leading retail and consumer products manufacturers such as Best Buy, ConAgra Foods,
Delhaize America, General Mills, Giant-Carlisle, H-E-B Grocery Co., Hormel Foods, Monoprix, PETCO,
Safeway, Sara Lee, The Home Depot, and WH Smith. Connected via the DemandTec TradePoint
Network™, DemandTec customers have collaborated online with over 2.2 million trade deals.
DemandTec, Inc.
1 Franklin Parkway, Building 910 n
San Mateo, CA 94403 tel 650.645.7100 n fax 650.645.7400
DemandTec for
Consumer Products
DemandTec offers consumer products manufacturers a powerful suite of solutions built on an industry-leading platform leveraging the
DemandTec TradePoint Network™:
Drive merchandising and marketing success throughout the trade management lifecycle through complementary analytical and software services.
A comprehensive foundation of shopper, account, and market intelligence that fuels
DemandTec’s software services and analytical services.
A collaborative, online platform enabling retailers and their suppliers to transact, interact, and collaborate using connected software services.
Copyright © 2010, DemandTec, Inc. All rights reserved. Printed in the
USA. DemandTec and the DemandTec logo are registered trademarks of
DemandTec, Inc. DemandTec Trade Effectiveness, DemandTec TradePoint
Network, and the DemandTec Platform are trademarks of DemandTec, Inc.
All other trademarks mentioned in this document are the property of their respective owners.
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