Solution intended to quantify and optimize total store impact of pricing and promotion strategies for all products
San Carlos, CA — March 1, 2004 — Demand management specialist DemandTec today unveiled the latest version of its flagship solution, offering applications for optimizing base pricing and promotions, whole store pricing and market basket analysis.
Positioning itself in the consumer demand management (CDM) space, DemandTec says that version 4 of its eponymous solution, due out in April, will give retailers the ability to quantify the total store impact of all of their merchandising decisions.
DemandTec 4 processes transaction log (T-log) data, point of sale (POS) data, loyalty data and syndicated data for every stock keeping unit (SKU) at every store, every week, according to the solution provider. Then the solution provides specific price recommendations and promotion tactics to help 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 capabilities offer cross-category product interaction and market basket insight to other DemandTec applications, helping 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.
The solution provider says that, with the addition of user-defined rules-based pricing to DemandTec's optimization capability, retailers can use one system to set prices for all merchandise, regardless of the nature of the item. The overall platform is intended to allow companies to find consumer buying patterns, apply business rules and objectives and test "what if" scenarios through a Web-based graphical user interface. The resulting data can provide retailers with a better understanding of consumer demand at every price point, helping them to make fact-based decisions
DemandTec 4 includes four Web-based products intended to help retailers create, test and execute merchandising strategies based on a clear understanding of consumer demand.
The DemandTec CDM Science Platform is designed to deliver an understanding of consumer demand across the entire retail enterprise using demand modeling techniques that provide consumer demand models for each SKU in each store. Additionally, this platform incorporates activity based costs to measure financial impact. Other DemandTec applications use this platform to help 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 use this application to see the effect of a promotion at the product, category and total store levels, according to the solution provider.
Finally, DemandTec Markdown determines the best price reduction strategies at the chain and store level. DemandTec says that this platform was architected to be extensible across the provider'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."
San Carlos, CA — March 1, 2004 — Demand management specialist DemandTec today unveiled the latest version of its flagship solution, offering applications for optimizing base pricing and promotions, whole store pricing and market basket analysis.
Positioning itself in the consumer demand management (CDM) space, DemandTec says that version 4 of its eponymous solution, due out in April, will give retailers the ability to quantify the total store impact of all of their merchandising decisions.
DemandTec 4 processes transaction log (T-log) data, point of sale (POS) data, loyalty data and syndicated data for every stock keeping unit (SKU) at every store, every week, according to the solution provider. Then the solution provides specific price recommendations and promotion tactics to help 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 capabilities offer cross-category product interaction and market basket insight to other DemandTec applications, helping 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.
The solution provider says that, with the addition of user-defined rules-based pricing to DemandTec's optimization capability, retailers can use one system to set prices for all merchandise, regardless of the nature of the item. The overall platform is intended to allow companies to find consumer buying patterns, apply business rules and objectives and test "what if" scenarios through a Web-based graphical user interface. The resulting data can provide retailers with a better understanding of consumer demand at every price point, helping them to make fact-based decisions
DemandTec 4 includes four Web-based products intended to help retailers create, test and execute merchandising strategies based on a clear understanding of consumer demand.
The DemandTec CDM Science Platform is designed to deliver an understanding of consumer demand across the entire retail enterprise using demand modeling techniques that provide consumer demand models for each SKU in each store. Additionally, this platform incorporates activity based costs to measure financial impact. Other DemandTec applications use this platform to help 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 use this application to see the effect of a promotion at the product, category and total store levels, according to the solution provider.
Finally, DemandTec Markdown determines the best price reduction strategies at the chain and store level. DemandTec says that this platform was architected to be extensible across the provider'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."
