DemandTec Announces New Version of Consumer Demand Management Applications
DemandTec 4 Dataflow Technology Quantifies and
Optimizes Total Store Impact of Pricing and Promotion
Strategies for all Products
SAN CARLOS, Calif. -- March 1, 2004 -- DemandTec Inc.,
the global leader in Consumer Demand Management (CDM)
software, with more customers in production than any
other CDM vendor, today announced the latest version
of its CDM Science Platform? and applications.
DemandTec 4? includes applications for optimizing base
pricing and promotions, whole store pricing, and
market basket analysis. With these capabilities,
retailers for the first time have the ability to
quantify the Total Store Impact of all of their
merchandising decisions.
DemandTec 4 efficiently processes vast quantities of
Transaction log (T-log) data, Point of Sale (POS)
data, loyalty data, and syndicated data for every
stock keeping unit (SKU), every store, every week.
Next, specific price recommendations and promotion
tactics are provided to merchandisers, category
managers and pricing analysts to achieve the optimal
balance of revenue, profit, and volume at the
category/store/chain level, while increasing traffic
and improving price image. In addition, DemandTec‚s
Market Basket and Affinity Analysis delivers
cross-category product interaction and market basket
insight to all DemandTec applications, enabling
retailers to understand the best way to grow the
number of baskets and basket size, and to improve the
overall profitability of each basket while
understanding the Total Store Impact of these
improvements.
With the addition of user-defined rules based pricing
to DemandTec‚s sophisticated optimization capability,
retailers for the first time can use one system to set
prices for all merchandise regardless of the nature of
the item. The overall platform enables customers to
find consumer buying patterns, apply business rules
and objectives, and test complex "what if" scenarios
with the ease of navigating a Web-based graphical user
interface. The resulting data provides retailers with
a clear understanding of consumer demand at every
price point, to make precise fact based decisions.
"Since DT4 supports the full spectrum of product
lifecycles ˆ in one system ˆ retailers can make the
best possible merchandising decisions by accurately
forecasting the perfect balance of price, promotion
and markdown to reach their business objectives," said
Dan Fishback, President and CEO of DemandTec.
"Our experience with DemandTec 3 is that it‚s the
ultimate consumer demand rules engine," said Don
Beaver, Senior Vice President, Information Systems &
CIO of H-E-B Grocery Company. "Now we‚re looking
forward to moving to DemandTec 4 because its rules
based, whole store pricing will streamline our
operations and enable us to more quickly react to
market changes."
At the heart of DemandTec 4 is the CDM Science
Platform, an enterprise solution that incorporates the
company`s patented consumer demand, financial, and
rules engines. Driving the T-log processing is a new,
patented dataflow engine. DemandTec automates
bi-directional data integration with data warehouse
and legacy systems via its DemandTec OpenLink
integration software.
DemandTec 4 - Retail Merchandising Optimization
Applications
DemandTec 4 includes four Web-based products that help
retailers create, test and execute merchandising
strategies based on a clear understanding of consumer
demand: DemandTec CDM Science PlatformTM, DemandTec
Price?, DemandTec Promotion? and DemandTec Markdown?.
-- DemandTec CDM Science Platform delivers a robust
understanding of consumer demand across the entire
retail enterprise utilizing patented demand modeling
techniques that deliver unique consumer demand models
for each SKU in each store. Additionally, this
platform incorporates activity based costs to measure
full financial impact. DemandTec CDM applications
utilize this platform to ensure that all activities
are mutually visible across the decision making
process.
-- DemandTec Price utilizes the CDM platform and
recommends the best base prices for every item in
every store. This updated application allows
retailers to create and test pricing strategies
incorporating key business rules and objectives, such
as price limits, volume goals, gross margin, brand
relationships, competitor pricing and cost changes.
-- DemandTec Promotion determines which products to
promote, product-to-product affinities, and which
promotions yield the best return. Retailers can
easily see the effect of a promotion at the product,
category and total store levels.
-- DemandTec Markdown determines the best price
reduction strategies at the chain and store level.
This platform was architected to be extensible across
DemandTec`s current and future applications so that
all merchandising activities are mutually visible
across the decision making process and use the same
data to ensure "one version of the truth.‰
DemandTec 4 will be generally available in April 2004.
For more information, please visit www.demandtec.com.
About DemandTec
DemandTec is driving the new economics of
merchandising by delivering Consumer Demand Management
software for retail merchandising optimization. The
company‚s patented applications offer a powerful way
for retailers and manufacturers to accurately forecast
consumer demand on hundreds of thousands of items
simultaneously and to execute strategies that meet
quarterly and annual business goals for sales, profit,
and price image. DemandTec products include DemandTec
Price?, DemandTec Promotion?, DemandTec Markdown? and
the extensible DemandTec CDM Science Platform?.
DemandTec customers include RadioShack, H-E-B Grocery
Co., Longs Drugs, and Duane Reade. For more
information, please visit www.demandtec.com.
Contact:
Jill M Dornan
Dornan Communications, Inc.
"reach your audience"
direct/mobile: 503.262.6505
email: jill@dornancom.com
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