News

Tuesday, 20. May 2008

Markant and Dacos finalize cooperation agreement for the integration of competitor shelf and promotion prices in the Retail Simulation Engine Users of the Retail Simulation Engine thereby have a vital competitive advantage.

Due to a cooperation with the trade and service corporation Markant, Dacos has decisively expanded its intelligent software system for the industry: the Retail Simulation Engine integrates the promotion and shelf prices of the competition. This enables the software to more precisely calculate the optimal long-term and advertising prices and the exact assessment of the right time for the next promotion. Users of the Retail Simulation Engine thereby have a vital competitive advantage.

Saarbrücken, May 20, 2008 – In retail, the key to success is the right pricing: optimal prices help a company establish a credible price image, strengthen customer retention and increase earnings. In combination with the right advertising promotion at the appropriate time, a retailer can significantly increase his own profits and assert himself against the competition. "More than any other industry partner, the retail branch possesses a highly valuable resource – data. These data about customer and competitor behavior must be used more intensively to better adapt the range of goods to future demands", according to Professor Dr. Hertel, Managing Director of Dacos Software GmbH. In this context, especially information about the pricing and advertising efforts of the direct competition can deliver the deciding competitive advantage.

As of immediately, Dacos simplifies the access to these data for the users of the Retail Simulation Engine. Due to a cooperation with the trade and service company Markant GmbH Germany, the prices of the key competitors can be automatically integrated for all users of the Dacos software. Thereby, the competitor prices (promotion and shelf prices) are made visible directly in the user cockpit of the Retail Simulation Engine and applicable for the pricing. This integration, and particularly the corresponding potential to apply price regulations with reference to competitor prices, substantially facilitates pricing.

On the basis of the existing data, the Retail Simulation Engine from Dacos calculates optimal prices for articles and promotions that are convincing to customers. By means of the process of Artificial Intelligence, the software filters those factors exerting influence on the customer behavior from the existing data material and identifies mutual dependencies. The findings are utilized to develop models that precisely simulate the decisions and actions of customers in "what if" scenarios. In turn, the optimal price and promotion decisions for the business can be deduced from these scenarios. The more data available to the user, the more accurate the calculation will be.

For Markant's trade and industry partners, the data provided by Markant from MAPIS, a Web-based information system, along with the shelf price raises from discounters and drugstores, are integrated via an additional software module. MAPIS contains the exact weekly promotion prices and advertised everyday low price programs of nearly the entire food retail trade, Cash & Carry, GV delivery service, discounters, drugstore markets and key non-food suppliers in Germany. At Markant, there's no need for further convincing: through the integration of MAPIS data in the Dacos solution, Markant trade and industry partners can realize an even greater profit potential. This solution corresponds very well with our performance portfolio: modern, uncomplicated and cutting-edge. This means that you receive best-practice, one-stop service.

For third parties in trade and industry who are not Markant members, Dacos has developed their own services in collaboration with leading suppliers. Dacos offers these data services for promotion prices, effective immediately. In the near future, Dacos will expand this service to include shelf prices. The data can be obtained on an annual subscription basis. Due to the expansion of the Retail Simulation Engine, the modules Price Engine and Promotion Engine can now effect a more competitor-oriented optimization of promotions and prices – at a minimal effort. Dacos thereby positions itself even more strongly as a competent retail industry partner for the optimization of prices, promotions and assortments. "In our opinion, the Retail Simulation Engine is the key tool for buyers and category managers in the retail industry. Through the integration of the competitor prices in the software cockpit, every category manager has an overview of the shelf and promotion prices applied by the competition at all times." explains Prof. Dr. Hertel.

About Dacos

Dacos Software GmbH was founded in 2001 as a spin-off of the German Research Center for Artificial Intelligence. The focus of the company is the development of a new generation of analysis, prognosis and simulation systems. Dacos has previously developed corresponding software solutions for the retail industry and the consumer goods industry. The implementation of Dacos core technology is planned in additional industries. Dacos was founded by Professor Dr. Joachim Hertel, Professor Dr. Joachim Zentes and Professor Dr. Jörg Siekmann (all Saarland University), among others. The Dacos developments are based on the latest realizations in the area of Artificial Intelligence and trade and marketing research.

About Markant

Markant Handels und Service GmbH Germany, a trade and service corporation with headquarters in Offenburg and Worms, promotes individuality and independence and therefore mid-sized and privately owned retail trade companies in Germany. Markant sees itself as a service provider, who joins the potentials and processes of many independent wholesale and retail corporations, in order to give all trade partners access to innovative services and effective process optimization. Markant cleared 25 bn. € in 2007 for the associated partner companies. Managing Directors of the company are Franz-Friedrich Müller and Markus Tkotz.