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The majority of survey respondents said that they believe collaboration is very important to their future
success. Among retailers responding, 92% said collaboration was "very important" and 8% said it was
"important." Manufacturers rated collaboration as "very important" 56% of the time, and "important" 39% of
the time.
Key benefits of collaboration cited by both manufacturers and retailers include not only ROI and effective
promotions, but also revenue growth and more efficient planning. At the top of the list, "More effective and Sponsored Links
efficient planning" was cited by 83% of retailers and 68% of manufacturers. "Revenue growth" is reported by
75% of retailers and 53% of manufacturers. "Reduced out of stocks" is claimed by 58% of retailers and 34% Six Sigma Certification
of manufacturers. In similar proportion, 58% of retailers reported "Share growth" due to collaboration, as did 100% Online-Six Sigma Certificate from Villanova -Find Out
37% of manufacturers. "More effective promotions" and "More efficient new product introductions" are More Now.
reported by half of both retailer and manufacturer respondents.
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Unlike studies that focus strictly on the use of trade funds management systems from a manufacturer
perspective, the survey, authored by industry research specialist Coogan & Partners, includes input from Get More Website Traffic
many of the world's leading retailers and manufacturers. These companies together represent 40% and 55% Cheaper Than PPC Campaigns. Click to Get a Free Website
of domestic grocery volume, respectively. The research yielded key insights into how the industry can best Analysis.
work together to improve the impact of retail-focused merchandising and marketing efforts both at the shelf
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Other key conclusions from the survey:
* Manufacturers and retailers are becoming increasingly interdependent --
In the not distant past visits between senior marketing management and
key retailers were rare. Yet both retailers and manufacturers today Name
report that marketing management is as likely to be engaged as the VP
of sales or chief customer officer. Address
* Promotion is a key collaboration touchpoint -- When asked to rank
City
collaboration skills across four key areas (general business, promotion
optimization, category/shopper management, and supply chain), both State/Pr Zip/Postal
retail and manufacturer respondents ranked promotion skills highest.
Furthermore, there was strong alignment between manufacturers and E-mail
retailers around promotion goals and vehicles that will grow in the
future. Continue Privacy Policy
* There are significant gaps between retailers and manufacturers around Outside the U.S. and
Canada, click here.
analytics and insight -- Despite the high profile of shopper marketing
in the industry, retailers rate the quality of their interactions with
market research and/or shopper marketing representatives well below
that of other functions. Manufacturers also had significant concerns
about the data they receive from retailers.
* Progress in promotion between manufacturers and retailers is uneven --
Though trade promotions are supposed to be mutually beneficial, 87% of
manufacturer respondents report they are "not satisfied" with their
http://money.cnn.com/news/newsfeeds/articles/prnewswire/AQTU08009102007-1.htm 10/13/2007
Collaborative Trade Promotion Optimization Drives Improved Business Results for Retai... Page 2 of 3
Methodology
The DemandTec/Booz Allen Promotion Collaboration Survey was conducted in partnership with the TPMA as
a web-based questionnaire using industry approved nomenclature and research techniques. The respondent
set included 54 unique, qualified respondents from retailers and consumer packaged goods manufacturers
representing 40% and 55% of domestic U.S. grocery volume, respectively. Coogan & Partners conducted the
survey during July and August 2007, drawing on members of the TPMA, customers of DemandTec and
clients of Booz Allen Hamilton.
Note to Editors: A summary of the survey findings is available free to the media.
About DemandTec
DemandTec's suite of on-demand applications empowers retailers and consumer products companies to
optimize pricing, promotion, and other strategic decisions in order to achieve their revenue, profitability and
sales volume objectives. 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 and Safeway, as well
as more than 100 consumer products companies. For more information, please visit www.demandtec.com.
Booz Allen Hamilton has been at the forefront of management consulting for businesses and governments for
more than 90 years. Providing consulting services in strategy, operations, organization and change, and
information technology, Booz Allen is the one firm that helps clients solve their toughest problems, working by
their side to help them achieve their missions. Booz Allen is committed to delivering results that endure.
With 19,000 employees on six continents, the firm generates annual sales of $4 billion. Booz Allen has been
recognized as a consultant and an employer of choice. In 2007, for the third consecutive year, Fortune
magazine named Booz Allen one of "The 100 Best Companies to Work For," and for the past eight years,
Working Mother has ranked the firm among its "100 Best Companies for Working Mothers." To learn more
about the firm, visit the Booz Allen Web site at www.boozallen.com. To learn more about the best ideas in
business, visit www.strategy-business.com, the Web site for strategy+business, a quarterly journal sponsored
by Booz Allen.
TPMA -- the Trade Promotion Management Associates -- is an organization dedicated to the effective and
efficient use of trade promotion dollars. TPMA is a resource for information and education on all types of trade
allowance programs, including the latest industry regulations such as FASB and Sarbanes- Oxley. We gather
the latest research and trends from industry experts, as well as distribute Best Practices information from
industry-leading organizations. TPMA's members benefit from being able to network with other Marketing,
Sales, Finance, and Operations Executives across industries to share best practices and strategies in a non-
competitive environment. For more information on TPMA, contact Mike Kantor, Managing Director at
mkantor@tpcww.com, or visit www.tradepromo.org
This press release contains forward-looking statements regarding DemandTec's expectations, hopes, plans,
intentions or strategies, including statements about the future adoption of DemandTec solutions by retailers
and consumer products manufacturers. These forward-looking statements involve risks and uncertainties, as
well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ
materially from those expressed or implied by such forward-looking statements. The risks and uncertainties
include those described in DemandTec's documents filed with or furnished to the Securities and Exchange
Commission. All forward-looking statements in this press release are based on information available to
DemandTec as of the date hereof, and DemandTec assumes no obligation to update these forward-looking
statements.
http://money.cnn.com/news/newsfeeds/articles/prnewswire/AQTU08009102007-1.htm 10/13/2007
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