News

Tuesday, 04. November 2008

In order to optimize the price management of their retail segment, the Bünting Group has decided in favor of a software solution from Dacos. This means that in the future, the Retail Simulation Engine will be deployed in all Combi consumer markets and in all branches of the famila self-service department store chain. • Visit Dacos in November at the Retail and Consumer Goods Trade Fair in Berlin and at the Retail Institute (EHI) Technology Days in Cologne.

Saarbrücken, October 28, 2008. Consumers are keeping a continually sharper eye on prices, while the long-term trend shows that costs for raw materials and energy continue to increase: This faces the retail industry with new challenges. In order to continuously obtain a return in this difficult market, more and more retailers are turning to professional pricing. When it comes to pricing, they no longer rely exclusively on experience or intuition, but prefer to use innovative software solutions.

Following dm drugstore markets, tegut, Globus, Ihr Platz and Spar Switzerland, the Bünting Group has now also opted to implement a product developed by Dacos Software GmbH. In the future, price decision in the famila and Combi markets will be taken with the Price Engine – an element of the Retail Simulation Engine – which is oriented on objective, measurable criteria. ”Dacos provides a competent solution for price optimization. In-depth discussions with Dacos have convinced our team to rely on the Retail Simulation Engine“, according to Manfred Neumann, CEO of the J. Bünting holding company. In taking this step, the company is optimally positioned for the future. ”In the retail branch, pricing has the most leverage with regard to making an effect on profit. Bünting has recognized this and is therefore taking the initial steps for optimizing price policies at an early stage. Decidedly better results will be achieved with the Retail Simulation Engine than with instinct and intuition", explains Professor Joachim Hertel, CEO of the Dacos Software GmbH.

The Bünting Group operates both traditional local shopping outlets as well as self-service department stores with a full-range assortment. Even with such heterogeneous distribution structures, the Price Engine is able to determine the prices within a merchandise group in consideration of both customer requirements along with profitability and price image. To achieve this, the software makes use of the latest scientific methods in Artificial Intelligence and econometric models, to reliably simulate and analyze customer purchasing behavior. Therefore, realistic prognoses can be generated about customer reactions regarding a potential price change. Additionally, competitor prices can be considered in the evaluation; this enables a quick response to changes in competitive situations.

The Retail Simulation Engine can access data on all current Data Warehouses and link them directly to existing databases. This user-friendly application is also valued by Uwe Weber, IT Director at Bünting GmbH: "The innovative technologies of the Retail Simulation Engine are futuristic. We are convinced that the solution developed by Dacos will optimally support our business processes and enable itself to be well-integrated in the state-of-the-art IT architecture of the Bünting Group".

Dacos will be represented at the German Retail and Consumer Goods Trade Fair on the 11th and 12th of November at the Estrel Convention Center, Berlin. Professor Dr. Hertel will hold a lecture on: "Customer-Oriented Profit Optimization - Optimizing Assortments, Prices and Promotions to Increase Customer Frequency, Sales and Profit" (November 11th, 6 p.m., Forum 1). In addition, Dacos has an exhibition booth (C01) at the associated trade fair Retail World. Dacos will already present themselves on the 5th and 6th of November as a logo sponsor at the Retail Institute (EHI) Technology Days in Cologne.

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 systems for analysis, prognosis and simulation. Dacos has already developed relevant software solutions for the retail branch and consumer goods industry. The implementation of Dacos core technology is also planned for additional industries. Dacos' founders include Professor Dr. Joachim Hertel, Professor Dr. Joachim Zentes and Professor Dr. Jörg Siekmann (all professors at the University of Saarland). Dacos developments are based on the latest findings in the area of Artificial Intelligence and research in retail and marketing.

About the Bünting Group
The Bünting Group, with its headquarters in Leer, just recently celebrated the bicentennial of its founding. It employs a staff of around 9,000 and supplies over 850 retail locations. The distribution area spans from the North Sea coast right down to the Sauerland region.