Unleashing brilliance in retail pricing.
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Unleashing brilliance in retail pricing.
Retail’s Era of “No Normal” Retail has long been a volatile sector, and the pandemic brought home the point with incredible force. But the truth is, there’s no point in searching for a ‘new normal’. The pace of change in shopper, competitor and market behaviors is accelerating constantly, and retailers need to structure for agility in their most critical functions – including pricing, promotions and markdowns. Their success very clearly depends on the ability to make real-time, data-driven pricing decisions - decisions only made possible with AI science-based solutions.
2021 RANKED IN
Gartner Constellation
Market Guide Research’s Ranked
FOR RETAIL UNIFIED
ShortList Top 10 in
PRICE OPTIMIZATION
PRICE, PROMOTION AND
MARKDOWN OPTIMIZATION
SOLUTIONS 21 Categories
APPLICATIONS Q1 2021
DemandTec provides the largest depth and breadth of proven lifecycle pricing solutions on the market, enabling retailers to better position themselves in a future where “normal” is unknown and continual disruption is assured. Working with more than 600 retail and CPG organizations globally, DemandTec’s AI-driven price, end-to-end promotion and markdown solutions help companies manage the complexity of highly dynamic decision-making environments. Through DemandTec, organizations are finding a new path forward to both meet shopper demands and drive desired business results.
With the most complete portfolio of lifecycle pricing solutions in the market being used
by some of the largest retailers in the world, DemandTec enables retailers to successfully
fulfill their lifecycle pricing needs through a single vendor.
Price & Dynamic Price Deal Management
1-3% sales revenue 3-5% gross margin 80% reduction in costs 40% in efficiencies
Full
Lifecycle
Pricing
Markdown Promotion
5-8 pts sell through, or 2-4 pts margins up to 9% volume up to 12% revenue
Price Management & Optimization
Our pricing solutions
Be precise and focused with enable retailers to:
price optimization, successfully
Deliver optimal prices through the industry’s
executing your price strategy to
latest AI modeling techniques to accurately
deliver the best price where it
recommend prices based on granular, current
counts while sustaining healthy price elasticity and demand trends.
overall margins.
Utilize the most productized science features
Global shopper research finds including strategy recommendations, basket
that price is the #1 factor for analysis and KVI recommendations, which 93%
shoppers when deciding where of retailers expect to re-assess in light of
to shop and can have the largest pandemic-driven shifts in price sensitivity.i
impact on customer satisfaction
Visualize key metrics, prioritize based on
and the retailer’s bottom-line. It
notifications and alerts, and quickly take action
is essential to get this right using
through an intuitive workspace.
today’s science-based processes
and algorithms, yet more than Align to price strategies and understand the
90% of retailers report manual or cost of rules and constraints to continually
only semi-automated processes refine and improve their pricing strategies.
for pricing, promotion and
markdown.
i "Smart Pricing Strategies for the Post-COVID World,"
Tim Denman, Editor-in-Chief, RIS News, June 2020.
”
We progressed beyond rules-based pricing to leapfrog past our
competitors and create a gap with them using pricing science.
This has delivered a strong, multi-year competitive advantage.
We are now the ones setting the pace and defining the market,
all of which we manage with price optimization.
Now our competitors are trying to follow us.
Maurizio Barsacchi, Director of Innovation and Systems, Conad Nord Ovest
Dynamic
Price
Keep up with the latest market trends
and price competitively while avoiding
rampant margin-eroding price matching
with our dynamic pricing solution,
delivering real-time price automation
and exception management.
With over 80% of people saying they
shop around and 9 out of 10 saying they
price check on Amazon, it’s imperative
for retailers to quickly respond to
market changes in strategic ways,
crafting prices that engage shoppers on
the items they care most about while
also protecting bottom-line results.ii
ii
Market Track and BloomReach.
Today our pricing team serves a much more
strategic role as price advisors to our colleagues, with
insights on elasticity and beyond that give the commercial
team confidence that they are offering the best prices.
Alessandra Shima, Pricing and Commercial Intelligence Director, Carrefour BrazilOur dynamic pricing solution allows retailers to: Quickly leverage the latest competitive price position and trends to price competitively on the most important items while avoiding rampant price matching elsewhere that needlessly erodes margins. Execute higher-frequency, automated pricing while quickly identifying and managing exceptions to drive optimal price changes across the entire assortment. Quickly analyze data and review actionable insights with dynamic reporting through a flexible and intuitive dashboard.
Deal Management & Advanced Deal Management
Put an end to countless emails and spreadsheets with a highly collaborative network that enables both retailers and vendors to streamline and automate deal management. With an average of 3.5 touches per trade deal, the amount of paperwork to manage vendor deals is burdensome, error-prone and time consuming. DemandTec pioneered deal management solutions for the market, and has developed extensive domain knowledge. We are the leading provider supporting vendor trade fund planning and negotiations. Our 30,000 retailer and vendor users efficiently and accurately manage offers, negotiations and promotions. And by streamlining and automating the deal management process most third-party audit expenses are eliminated, delivering swift ROI and clean auditability and Sarbanes-Oxley compliance. Combined with our promotion solutions, retailers can seamlessly move from the right deal to the right promotion and on through promotion execution, creating a continuous end-to-end promotion optimization process.
We easily submit and negotiate promotions and then
identify the details of claims quickly. Because all of the
information is tied together we can effectively actualize our
liabilities and re-plan unspent funds for new offers
to the retailer.
Acosta
””
“The PAC2000A pricing analysts
have become more strategic, and
they now optimize and present
the pricing strategies and
scenarios results to merchants,
faster than before when the
competitors update their prices.
People enjoy their jobs more and
can see how using DemandTec
helps them achieve the
organization’s goals. Today the
system is very well-liked among
its users. And we’ve also delivered
measurable profit improvements
to the business.”
Vanni Chioccoloni, Chief Information Officer, PAC2000A
Promotion
”Through our end-to-end promotion
solutions, retailers are empowered to:
Quickly determine optimal promotional
offers within their various ad channels
and vehicles to significantly grow
baskets, drive traffic, increase revenue,
and help retailers achieve item and
category-level objectives.
Generate promotional forecasts using
a holistic approach of considering
cannibalization, halo and cross-elasticity
effects of regular retail and promotion
pricing to provide the most accurate
forecasts possible, including in-flight
adjustements. Post- event analysis
Streamline one of the most complex enables retailers to strategically take
processes in retail with a solution action and understand results.
that provides end-to-end promotion
capabilities in a flexible and Streamline the trade promotion process
centralized planning environment. by automatically surfacing offers
submitted by vendors when using the
Promotions are one of the most deal management solution. These trade
complex and critical processes promotions can be forecasted against
and included in the broader promotion
in retail and managing the sheer
planning process.
volume of data can be overwhelming.
Our flexible, cloud-based promotion
Create print advertisements and
solution provides merchants with a
circulars with customizable template
centralized planning environment.
and content libraries to manage layout,
copy, images, and versions, as well as
proofing and publishing.Markdown
Clear inventory as profitably as possible while balancing shopper demand in one tool that covers your
entire assortment, both softlines and hardlines. Retailers are enabled to optimize their markdown plan
with dramatically improved markdown cadences, timing and depths.
Markdowns are becoming increasingly more complex no matter the retail vertical. Channel disruption,
rapidly expanding and localized assortments, competition and category killers, changing consumer
tastes - the list goes on. Markdown plans must be optimal and agile to keep up with this ever-evolving
retail environment.
“Now we take a scientific approach to pricing rather than
relying on individuals’ beliefs or assumptions. We can leverage
science to evaluate and make the best decisions for new areas,
new stores and new zones.”
Maurizio Barsacchi, Director of Innovation and Systems, Conad Nord Ovest
DemandTec’s Markdown solution covers all retail formats and all inventory, from food to fashion, on a
single platform. This allows highly seasonal retailers to optimize their markdown plans, account for
in-season additions and drops, and meet sell-through targets, while hardline and grocery retailers can
understand how to clear inventory more profitably and general merchandisers can leverage a unified solution.
DemandTec provides retailers with the flexibility to develop markdown plans for chains, division, zones
or even individual stores that consider store-specific price elasticity, store-level inventory, and the sales
velocity of each store.Cover all retail formats and all inventory, from food to fashion, on a single platform. This allows highly seasonal retailers to optimize their markdown plans, account for in-season additions and drops, and meet sell-through targets, while hardline and grocery retailers can understand how to clear inventory more profitably and general merchandisers and superstores can leverage a unified solution. Develop markdown plans for chains, divisions or zones that consider store-specific price elasticity, store-level inventory, and the sales velocity of each store. Optimize your markdown plans with the recommended proper mark depth and cadence, manages exceptions, with continuous updates based on in-flight results, optimizing and adjusting the plan to reflect changing market and inventory conditions. Set primary and secondary goals, along with rules and thresholds, to automate the generation and approvals of plans that align with profit and revenue objectives.
Why DemandTec?
Portfolio
DemandTec offers the most complete and extensive end-to-end portfolio of lifecycle
pricing solutions, serving ALL verticals from food to fashion. Proven ROI through the
industry’s largest customer base of 700+ global customers.
People
The DemandTec team is comprised of retail veterans with decades of experience and
domain knowledge helping retailers become more profitable. Our award-winning science
team continues to expand the horizons of productized science and applied AI.
Pioneer in AI-powered Pricing
Considered the pioneer in retail price optimization and the first to introduce AI/ML
pricing to retailers, DemandTec holds the largest number of patents (25+) in the areas of
pricing, promotions, behavior and pattern recognition and response analysis.
Pricing Science
$ We have the most advanced pricing science in the industry with over 2 decades of
evolution and the most productized science on the market today.
Productized Solutions
The type of science retailers need must be repeatable as often as the market changes. It
cannot be provided as one-off analytical services or engagements and then left on a shelf
to collect dust. DemandTec offers the most productized science capabilities, like KVI
recommendations, which is now the #1 pricing related focus for retailers. Our customers
have less dependency on expensive, time-consuming analytical services engagements.
Perpetual Innovation
With 20+ years of experience providing groundbreaking retail pricing solutions, we
continue to invest in advancing our products and providing the leading-edge technologies
to our clients.The only vendor in the market that can check every box Cloud service provider Transparency Visibility into the "why" behind pricing recommendations. Price Management, Optimization Complete Lifecycle Pricing Portfolio Dynamic Pricing Retail/CPG Deal Management Network Deal submission, negotiation and reconciliation Promotion Management & Optimization Promotion Execution Ad layout, proofing, and publishing Single Markdown Solution addressing the entire assortment across across long-life (e.g. grocery) and short-life (e.g. fashion) Automated KVI optimization Automated strategy recommendation 22+ science patents 20+ years as a leader in AI-powered pricing Continuous focus on innovation and investment in building next gen-pricing solutions
Who we are DemandTec, a strategic business unit of Acoustic, is committed to taking AI automated lifecycle pricing to new heights. With deep and commanding worldwide retail pricing domain knowledge and experience, DemandTec enables retailers and CPG partners to deliver optimal pricing, promotions, and markdowns across all retail channels to thrive in today's hyper-competitive retail landscape. Ranked among the top 10 providers in 21 categories in the 2021 RIS Software LeaderBoard, DemandTec addresses retail pricing challenges today and into the future with relentless focus, commitment and ongoing investment. For more information, visit www.demandtec.com or follow us on LinkedIn or Twitter. To learn details about our RIS LeaderBoard rankings, visit our resource page. Why DemandTec? We are a single vendor that addresses the full lifecycle of price, from everyday, to promotion, all the way to clearing out end of life. providing the largest depth and breadth of proven pricing solutions on the market. We are the pioneers in bringing AI into retail pricing solutions and proving its value to the market. With a reputation and a culture of driving breakthrough innovations, we continue to deliver the most advanced science and applied AI in the industry. Our deep domain knowledge drives our focused vision of where retail pricing is going and delivers powerful technology to take retailers there. Who is Acoustic? Acoustic is an independent marketing cloud with the open platform needed for success in a dynamic world. We're reimagining marketing technology by lessening the burdens of repetitive tasks and equipping marketers with powerful technology that is simple and easy to use. We give marketers more time to do what really matters—to think bigger and put themselves back into the work. We help marketers aim higher, bringing humani- ty back into marketing. Acoustic serves an international client base of more than 3,500 brands, including Fortune 500 companies, providing digital marketing, marketing analytics, content management, personalization, mobile marketing, and marketing automation solutions. For more information, visit www.demandtec.com
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