DemandTec

DemandTec Trade Planning & Optimization™

Build Better Plans with DemandTec’s Trade Planning & Optimization Software Service

• Optimize trade planning with a unified pricing and promotion application
• Accurately predict key volume and financial metrics for your brands and the retail category
• Outsmart the competition by quantifying competitive activity against your portfolio
• Enhance retail sell-in success through comprehensive trade planning use cases

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:

• Up to 15% increase in promoted volume
• Up to 5% increase in total volume
• Up to 10% decrease in cost per incremental
• 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.

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:

• Gaining consumer demand insights into every item merchandised within a retail category
• Planning and predicting comprehensive trade events including price adjustments, ad placement, and display support
• Aggregating multiple trade promotions to assemble a category plan, and then repredicting that plan in total
• Evaluating trade activity assuming a nested EDLP buydown throughout a broader planning window
• 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 1-888-221-6128 or request information online.