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?Cannondale Associates Announces DemandTec to Integrate RichMix Efficient
Assortment Software Into New Offering for Retail Industry
Deal to expand utilization of industry-leading approach to assortment analysis
throughout retailer community
Wilton, CT – June 25, 2008 – Cannondale Associates, Inc., a leading sales and management consulting
firm, announced today that DemandTec, Inc. has selected its RichMix Efficient Assortment product for
integration into DemandTec’s suite of science-based software services for retailers. Under the terms of
the agreement, DemandTec acquired from Cannondale the right to integrate the RichMix product with the
DemandTec Platform?, build additional functionality, and exclusively market Assortment Optimization,
the resulting DemandTec software service, to the retail industry.
DemandTec provides on-demand optimization solutions to help retailers and consumer products
manufacturers understand consumer shopping behaviors and use that understanding to optimize
merchandising and marketing decisions to achieve financial objectives, to better utilize promotional funds,
and to drive long-term loyalty to the brand or retail banner.
“Based on our analysis, we believe Cannondale’s RichMix is becoming the industry standard for assortment planning used by consumer products companies in collaboration with retailers,” said Craig
Silverman, vice president of strategy at DemandTec. “When evaluating approaches to bring an assortment optimization product to market, we determined that our customers would benefit most from a
new offering that combines DemandTec’s science and platform with this proven, best-in-class product.”
At the heart of assortment optimization analytics is the ability to accurately measure transferable demand,
the volume that shifts between products as the assortment changes. By measuring the true
incrementality of each item, users can determine which mix of products maximizes sales or profits at the
category level. The software used to apply these analytics includes robust functionality, including what-if
scenario comparisons, multiple optimization criteria, advanced value of a facing analytics, and guided
analyses for common assortment tasks such as one-in-one-out, sku reductions, or space reallocation.
“We are thrilled to enter into this relationship with DemandTec and see it as a way to dramatically improve
collaboration between manufacturers and retailers in the area of efficient assortment,” said John Carlson, managing director at Cannondale Associates. “DemandTec has the science, the people and the
relationships necessary to penetrate the retail market more rapidly than Cannondale could do on its own.
At the same time, our manufacturer clients will benefit by ensuring that the RichMix approach is better
understood and accepted by retailers as the industry standard.”
DemandTec’s Assortment Optimization software service will integrate assortment analytics and
functionality with a well established platform addressing other retailer needs. “We have been witnessing
the convergence of merchandising and marketing in the retail industry for some time now,” said Marc
Dietz, vice president of marketing at DemandTec, “but only now is a comprehensive solution available for retailers to generate competitive advantage by deploying an analytical, predictive platform coupled with
integrated applications to optimize pricing, promotions, assortments, space, and loyalty marketing.”
About Cannondale Associates
Cannondale Associates is a leading sales and marketing management consulting and software solutions firm with offices in Wilton, CT and Evanston, IL and is part of Kantar and WPP. The company focuses on increasing collaboration between manufacturers and retailers to build category sales and profits, and to better meet shopper needs. Cannondale is also the publisher of several well-known studies, including the PoweRanking? report and annual industry benchmarking studies on trade promotion spending strategies, category management/consumer marketing at retail (CMAR) and foodservice.
DemandTec (NASDAQ: DMAN) enables retailers and consumer products companies to optimize merchandising and marketing decisions, individually or collaboratively, to achieve their sales volume, revenue, and profitability objectives. DemandTec software services utilize DemandTec’s science-based
software platform to model and understand consumer behavior. DemandTec customers include more than 140 leading retail and consumer products manufacturers such as Advance Auto Parts, Best Buy, Circle K Stores, ConAgra Foods, Delhaize America, Dr Pepper Snapple Group, Giant-Carlisle, H-E-B Grocery Co., Hormel, Monoprix, Safeway, Sara Lee and Tyson Foods. Connected via the DemandTec TradePoint Network?, DemandTec customers have collaborated online on more than one million trade deals. For more information, please visit www.demandtec.com.
Cannondale Associates, Inc.