ProfitLogic Announces Acquisition of Advertising Advisor
Acquisition of Promotion Optimization Software Reinforces ProfitLogic’s Commitment to Helping Retailers Address Key Merchandising Challenges
Boston, MA – April 12, 2004 – ProfitLogic, whose suite of Merchandise Optimization solutions helps retailers make more profitable merchandising decisions, announced today the acquisition of certain technology assets of Advertising Advisor, a promotion optimization software previously marketed by NetPerceptions, Inc. (See previous NetPerceptions announcement at www.netperceptions.com/corpir/ireye/news_2004_thalveg.html .)The acquired assets, in combination with ProfitLogic’s other leading analytic capabilities, form a solution that helps retailers optimize their sales and gross margin from promotional spending and provide advanced capabilities for gleaning product affinity effects, optimizing investments in circulars and other promotional vehicles, and scaling to handle large transaction-level data required to generate meaningful promotional analytics.
This acquisition reinforces ProfitLogic’s ongoing commitment to provide retailers with a powerful suite of Merchandise Optimization solutions that utilize a common Demand Intelligence Framework to help retailers plan, allocate, promote and price inventory throughout the merchandise lifecycle. ProfitLogic plans to use the Advertising Advisor assets to accelerate the development of a complete Promotion Optimization solution.
"Spending on promotional marketing is between 8 and 12% a year, and applying that to the right promotions, on the right products for the right mix of lift and margin is critical to improving profitability and bettering the consumer experience." “Advertising Advisor allows ProfitLogic to accelerate the development and delivery of a promotion optimization system that fills out a major component of an effective lifecycle price and product management technology framework," wrote Scott Langdoc, Vice President of the Retail Practice at AMR Research in his AMR Alert titled "ProfitLogic Buys Ad Advisor for Promo Optimization and True Merchandise Optimization" published on April 8, 2004.
“Our strategy is to focus on intellectual property that helps advance retail decision-making, and we believe we’ve uncovered untapped potential with this acquisition,” said Tom Ebling, Chairman and CEO of ProfitLogic. “Like markdowns, retailers invest in promotions in order to spur sales and move inventory, but it is incredibly challenging to determine the best way to maximize a return on those investments. We look forward to bringing this value to the retail market through our Promotion Optimization solution.”
ProfitLogic provides industry-leading Merchandise Optimization solutions designed for retailers whose top priority is getting the highest return on inventory investments. ProfitLogic’s customers have found that using insights into future customer demand results in more profitable merchandising decisions and more time to focus on what matters most: the customers and the merchandise.
About ProfitLogic
ProfitLogic`s industry-leading suite of Merchandise Optimization solutions helps retailers make more profitable merchandising decisions. The suite, based on the company`s 20 years of experience providing analytical solutions for critical merchandising issues, is focused around four central merchandising processes: assortment planning, allocating, pricing and promoting. ProfitLogic has delivered fast, flexible solutions with significant financial benefit to industry leading retailers such as American Eagle Outfitters, AnnTaylor, Bloomingdale`s, Charming Shoppes, Famous Footwear, Gap Inc., including: Banana Republic, Gap, Old Navy, Gap International and Gap Outlet; The Home Depot, JCPenney, Lerner New York, Marshall Field`s, Meijer Stores, Northern Group Retail, and ShopKo Stores. For more information about Cambridge, Mass.-based ProfitLogic, call 617-218-1900 or visit www.profitlogic.com.
Contact:
Jakki Glivicky
ProfitLogic
617-374-5959
jglivicky@profitlogic.com
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