Hoping to sell more of its software to large consumer goods manufacturing companies, Oracle Corp. yesterday announced availability of a new off-the-shelf integration between two of its packages that will support advanced analysis and simulation of trade promotions.
The integration between the Trade Promotions Management module of Oracle’s Siebel CRM suite and the Predictive Trade Planning and Promotion Optimization piece of its Demantra demand planning product is targeted at large CPG manufacturers already running Siebel Trade Promotions Management, said Jeff Wexler, Oracle’s vice president for retail and consumer goods product strategy, in an interview.
Many large CPG manufacturers use Siebel Trade Promotions Management to execute and settle promotion deals with retailers such as Wal-Mart and Target, Wexler said. Under such deals, for example, CPG representatives pay retail partners to display products in an aisle-end location or include them in a retailer’s advertising. Consumer goods manufacturers spend between 17% and 20% of their revenues on trade promotions, Oracle estimates.
Integration of the Demantra Predictive Trade Planning and Promotion Optimization module with Siebel will allow CPG manufacturers to more easily analyze the effectiveness of the promotions spending that they manage through Siebel, Wexler said. Demantra, for example, provides sales and statistical forecasts, account planning summaries, and quota analysis. Demantra can also be used to model and simulate promotions and conduct pre-promotion analysis of lift and profitability. Such analytical tools, he said, can help CPG manufacturers better understand the ROI of their trade promotions spending.
“We’re helping CPG companies bring management of promotions spending to the next generation by understanding how they can spend more effectively,” Wexler said.
Oracle effected the Siebel-Demantra integration using its Application Integration Architecture (AIA), which is based on the company’s Fusion Middleware integration tools. The Fusion tools support data and process integration between two applications using Web services.
The new Siebel-Demantra integration is just the latest iteration of Oracle’s successful strategy to cross-sell its enterprise applications, many of which have been added through an acquisition binge by Oracle over the past four years. Oracle, for example, has used AIA to integrate the Siebel CRM On Demand product with its E-Business Suite and to tie Siebel CRM to the order management module of E-Business Suite.
In March, Oracle announced a similar integration between its JD Edwards Enterprise One offering and the Demantra Trade Promotions Management module.
Oracle acquired Siebel in the fall of 2005 and Demantra in June 2006.
The new Siebel-Demantra integration will be priced and licensed as a separate product, said Wexler, who declined to provide pricing. The product is now generally available.