DemandTec Launches DemandTec 5 for Retail and Consumer Products Industries

Enterprise platform for demand, market, and consumer intelligence and demand–driven marketing and merchandising software enable breakthrough capabilities for retailers and CP manufacturers

SAN CARLOS, Calif. – May 24, 2005 – DemandTec, the leading provider of Consumer Demand Management (CDM) software for retailers and consumer products companies, today announced the release of DemandTec 5, a breakthrough for retailers and consumer products manufacturers, featuring the latest generation of its DemandTec CDM Platform and consumer demand–driven merchandising and marketing software suites.

Unprecedented in the retail and consumer products industries, DemandTec 5 combines a comprehensive demand, consumer, and market intelligence platform integrated with powerful software applications that enable retailers and consumer products manufacturers to develop and execute more effective marketing and merchandising programs that drive profitability, differentiation, growth, and customer loyalty.

DemandTec CDM Platform – Single Source for Demand, Consumer, and Market Intelligence

The DemandTec CDM Platform is the industry's only comprehensive, predictive software foundation based on the science of Consumer Demand Management and full–context market research insights.

• The DemandTec CDM Platform provides the industry's most advanced store–SKU level demand modeling and forecasting science for Consumer Demand Management, creating a quantified, actionable understanding of consumer demand. The DemandTec CDM Platform incorporates item– and cross–elasticities, configurable merchandising causals, product affinities and cannibalization, explicit competitor merchandising information, media variables, weather, inventory, seasonality, panel insights, loyalty insights, and market trends.
• The DemandTec CDM Platform delivers rich consumer insights, customer segmentation, and market basket analysis to quantify and understand consumer behavior based on both anonymous retail transaction log data and identified customer loyalty data.
• With DemandTec 5, consumer insights derived from point–of–sale data are now augmented by a full context understanding of the customer and the broader competitive market environment, accomplished by incorporating consumer panel data, syndicated market data, and other analytics from leading marketing information companies such as .
• The DemandTec CDM Platform is an enterprise software class foundation for multiple predictive marketing and merchandising applications. Able to scale to meet the needs of the largest retailers and manufacturers, the DemandTec CDM Platform includes breakthrough technology in order to process massive volumes of granular retail transaction log data and perform sophisticated analyses on the fly.
• The DemandTec CDM Platform also features a flexible, industry standards–based architecture, enabling integration between DemandTec applications, customer–developed applications, and industry partner applications.

"DemandTec 5 brings to life the revolutionary capabilities DemandTec has been working towards for the last five years," said Dan Fishback, president and chief executive officer of DemandTec. "By building an enterprise demand intelligence platform for our demand–driven marketing and merchandising applications, we have taken a unique approach in the industry. And by incorporating consumer and market insights from third party marketing information providers, the DemandTec CDM Platform is now the industry's gold standard foundation for demand–driven merchandising and marketing applications."

DemandTec 5 for Retail
DemandTec 5 enables retailers to develop and execute strategic, consumer demand–driven merchandising programs to maximize profitability, growth, differentiation, and customer loyalty. For retailers, DemandTec 5 delivers:

• Consumer Demand Intelligence –– the DemandTec CDM Platform provides the predictive demand intelligence to support all demand–driven merchandising, marketing, and retail planning functions including strategic pricing, promotions, markdowns, assortment and space planning, allocation and replenishment, as well as store clustering and location planning.
• Customer Intimacy and Marketplace Intelligence Insights – only DemandTec can provide full–context demand, consumer, and market intelligence, enabling retailers to make better, more proactive merchandising and marketing decisions based on a better understand their customers and of their competitive market environment.
• Enterprise software for consumer demand-driven merchandising - applications for Complete Lifecycle Pricing, including regular price, promotion, and markdown management.

Also announced in a news release today, DemandTec will be showcasing DemandTec 5 for Retail this week in Chicago at the Retail Systems 2005 Conference and Expo, at McCormick Place, Booth 323.

DemandTec 5 for Consumer Products
DemandTec 5 enables consumer products manufacturers to leverage the DemandTec CDM Platform to optimize trade, marketing and price investments, resulting in measurable improvements in sales and profitability.

For consumer products manufacturers DemandTec 5 delivers:

• Enterprise software designed specifically for use by operational sales and marketing personnel optimizing promotions and marketing spend in real–time
• The ability to actively collaborate with retail customers utilizing a fact–based solution that delivers accurate and trusted plans benefiting both the manufacturer and retailer
• A quantifiable understanding of consumer demand enabling consumer products manufacturers to "speak the language of the retailer" with respect to consumer demand and quantify the total category impact of promotion and pricing programs for both manufacturer and retailer.

About DemandTec
DemandTec's Consumer Demand Management software helps retailers and consumer products manufacturers strategically plan, optimize, and execute demand–driven merchandising and marketing programs based on a quantified understanding of consumer demand. Retailers have ranked DemandTec #1 in Strategic Value, Customer Satisfaction, and Quality of Service among the top 50 retail software vendors in the 2004 RIS Leaderboard survey. DemandTec customers include B&Q, Best Buy, Brookshire Grocery Company, Duane Reade, H–E–B Grocery Co., Longs Drugs, Monoprix, RadioShack, and Safeway. DemandTec software is provided via the IBM On Demand program. For more information, please visit www.demandtec.com

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