DemandTec Launches Next Generation of Promotions Management with Acquisition of TradePoint Solutions


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Retailers, manufacturers, and sales agencies to benefit from industry€™s only Software-as-a-Service solution for promotion analytics,optimization and deal management

SAN CARLOS, Calif. €” December 12, 2006 €” DemandTec, Inc., the leading provider of Consumer-Centric Merchandising, Sales and Marketing software for retailers and consumer products manufacturers, today announced the acquisition of TradePoint Solutions, Inc., Pleasanton, Calif., the industry€™s first and leading provider of online deal management software linking manufacturers, sales agencies and retailers on one platform. The TradePoint software application will now be marketed as DemandTec TradePoint.

€We are delighted to add TradePoint€™s best-in-class, collaborative deal management solution to our suite of software-as-a-service applications,€ said Dan Fishback, president and CEO, DemandTec, Inc. €Retailers and manufacturers are asking for a new approach to promotions management that is efficient, effective and standards-based, and DemandTec €™s leadership in this regard has been well received in the marketplace.€

Next Generation Trade Promotions Solution

The combined solution from DemandTec, including the DemandTec TradePoint and DemandTec Promotion modules, is the industry€™s first to combine consumer demand management and forecasting, promotion planning and optimization, and online collaborative deal management, all delivered via a software-as-a-service platform for both retailers and manufacturers.

Benefits to manufacturers and sales agencies include improvements in trade spend effectiveness and efficiency, improved demand planning, better forecast accuracy, efficient and accurate deal negotiation, streamlined deduction clearing and improved audit compliance.

Benefits to retailers include consistent deal management and billing across all vendors and brokers, integrated and controlled planning with vendors, improved promotion and category performance, better forecast accuracy and in-store service levels during promotions and improved audit compliance.

Acquisition gets Retailer, Manufacturer and Analyst Support

Retailers currently using DemandTec TradePoint to manage online trade promotions with their vendors account for nearly one-third of all supermarket grocery volume in the United States.

“We are pleased that these two market leaders are joining forces,” said Frank Calfas, President of Marketing Operations, Safeway, Inc. “Both companies have been excellent business partners and have provided us with innovative solutions to managing promotions.”

Consumer products suppliers and sales agencies also use the DemandTec TradePoint platform, with more than 2,000 companies submitting deals to their retail accounts through the system.

€Promotions are an important part of growing our consumer brands and our relationships with our retail customers,€ said Scott Antony, Division Director, Unilever U.S. €By providing visibility and ease-of-administration to the promotions process, and the analytics to help make each promotion more effective, this solution will meet an important need in the marketplace.€

€Cadbury Schweppes is investing in increasing the efficiency and effectiveness of our trade promotions and TradePoint has been a valuable business partner in this regard,€ said Ben McElroy, Vice President, Cadbury Schweppes Americas. €This combination creates a very compelling offering for the manufacturing and retailing industries.€

€To optimize marketing activities and accurately forecast advertised product demand, retailers are beginning to work more closely with suppliers to coordinate concurrently the acceptance of vendor deals, promotional product selection, and placement in collateral,€ said Lora Cecere, Vice President of Research, AMR Research, in €Become a Demand-Driven Trading Partner: Share Data, Insights and Value€, (AMR Research Alert Oct. 31, 2006).

Convergence of deal management with demand management offers great advantage to the retail and consumer products industry. As Hung LeHong, Research Vice President, Retail Industry Team at Gartner, predicted in a report released Dec. 12, 2005:

* For many retailers, vendor deal management software will become an important component of a retailer’s promotional capabilities.

* The need for sound accounting practices will drive adoption, but the ability to track uncollected or untimely trade funds will drive the real benefits.

– LeHong, Hung, €Building a Complete Retail Promotions Suite€, Gartner, Inc., Stamford, CT

About DemandTec
DemandTec’s Consumer-Centric Merchandising, Sales and Marketing software helps retailers and consumer products manufacturers strategically plan, optimize and execute pricing, promotion and markdown programs based on a quantified understanding of consumer demand. DemandTec customers include leading retailers such as Advance Auto Parts, Best Buy, Circle K Stores, Delhaize America, Giant-Carlisle, H-E-B Grocery Co., Monoprix, Safeway and over 100 consumer products manufacturers. For more information, please visit

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