Vistaar Price and Promotion Solutions for

Beverage Alcohol

Vistaar’s solution is

particularly suitable for:

“[With Vistaar], our

pricing and sales teams

are now able to work

together to create and

manage effective

pricing structures.”

“…Vistaar arms our field

reps with the

information they need

at their finger tips to

negotiate better deals

that maximize value

capture throughout the

value chain.”

V.P. of U.S. Commercial

Strategy & Operation,

Beam Global

Spirits

Companies

Beer

Companies

Wineries

What if you could

Increase your Profits per Case by

33 to 50 Cents?

Improve ROI 8-15% on Price Promotions?

Optimize Price Structures

You Can…with Vistaar.

WHAT IS THE VISTAAR PRICE AND PROMOTION SOLUTION?

Plan better, sell better, track better—what’s that worth to a company? VISTAAR's customers in the beverage alcohol industry will tell you it’s worth 30 to 50 cents per case in improved profit. We begin by improving planning through optimized strategy for pricing and promotional support. The solution then provides expert guidance to the sales organization before, during, and after negotiations with distributors and wholesalers. Finally, we close the loop through the use of a robust analytical library that supports metrics for tracking plan vs. actual, ROI analysis, and numerous other data views.

Plan

Pricing Strategy Effective Promotions

Optimal Price Structure Negotiation

Recommendations

Plan vs. Actual ROI Analysis Analytical Insight

Sell Track

WE UNDERSTAND YOUR PRICING CHALLENGES

Pricing in the U.S. Alcoholic Beverage industry is arguably the most complex in the world considering

three tier distribution business model, varying governmental regulations for open and control states, complex tax structures.

When you further consider the dynamic competitive structure of the market and the need for a rapid competitive response mechanism, it’s clear that a pricing solution must go beyond analytical insight to enable real-time decision making across your Sales, Marketing, and Finance groups.

Fortunately, Vistaar has built a solution that addresses these challenges. Some of the largest companies in the world including Beam Global Spirits & Wine have adopted the Vistaar solution.

DATASHEET // Vistaar Price and Promotion Solutions for Beverage Alcohol Companies Page 2

HOW VISTAAR ENABLES BETTER PRICING

Price planning is an integral part of the pricing process in the alcohol beverage industry. This includes front-line price planning and price promotions in the form of temporary price reductions. Vistaar incorporates pricing science into the process to enhance the ‘art’ of planning through scientific analysis and rigor. Our price elasticity and promotional lift models serve to improve visibility throughout the planning process, which ultimately results in better outcomes.

The Vistaar solution seamlessly combines optimal Front-Line Pricing with Price Promotions in a manner that enables users to understand the impact their actions will have on volume and margin before implementing them in the market. This is critical, because it’s the shelf price that implements your pricing strategy.

Key Solution Capabilities

Portfolio Management Strategies Revenue Planning Competitive Insights Price Elasticity Models Promotion Lift Models

Key Benefits

Improved Pricing Strategy More accurate Volume and Budget forecast

accuracy Increased ROI on Promo spend

Retail Price Planning Scenario

HOW VISTAAR ENABLES BETTER SELLING EXECUTION

If you’re like most companies in the alcoholic beverage industry, you have thousands of price structures. The benefits of the Vistaar solution start with automated data population, so that your sales team spends less time looking for data and more time creating error-free and optimal price structures.

During the process of preparing a new price structure, the user understands the impact of proposed changes at the deal, brand, and portfolio levels instantaneously. And, these changes are computed for the Supplier, Wholesaler/Distributor and retail levels, which enable creation of win / win pricing scenarios for all members of the three-tier value chain.

Rapidly reacting to competitors, introducing new products, or addressing supply and demand imbalances all require an understanding of P&L impact on costs, prices, margins, market share, and more.

Vistaar scenario planning allows you to easily understand the impact — from the individual product level up to an entire business unit — and choose the right combination of changes to achieve your business goals. In addition to this flexible user-driven sensitivity analysis, the solution also provides system- generated simulations that leverage advanced optimization techniques to create best case scenarios that users may have otherwise overlooked.

Price Structure Workbook

DATASHEET // Vistaar Price and Promotion Solutions for Beverage Alcohol Companies Page 3

Price structure optimization and competitor driven market responses typically require approvals throughout the organization. The Vistaar solution ensures that business / pricing rules are consistently applied as sales personnel negotiate and finalize deals. For example, automatic application of rounding rules known as “penny pinching” can drive significant incremental profit. Also, adhering to price gap rules by size and brand enforces strategic differentiation for the entire portfolio and optimizes positioning vs. competition.

In short, established Pricing Best Practices are consistently integrated into the price structure creation workflow in order to maintain an active link between strategic planning and sales execution.

Key Solution Capabilities

Optimized Price Structures Gaming Scenarios Strategic Alignment Line Wash View “Pinching Pennies” Best Practice “Guard Rails” Approval workflow

Key Benefits

Improved Gross Profit More Successful Negotiations Ability to balance Margin and Volume Objectives Rapid and Fact-Based Competitive Response Increased accuracy

Line Wash Report

HOW VISTAAR ENABLES BETTER TRACKING

Performance Management ensures constant monitoring and management of the Planning and Selling processes. The analysis is highly tailored to the Planning and Selling workflow, which means the analytics are meaningful and actionable. Tracking extends into automated processes within the Vistaar solution, which means that all charge-backs can be automatically tied to invoices, which eliminates labor and increases accuracy

Analytical Library Examples:

On-premise / off premise consumption Break-Even analysis for distributor Break-Even analysis for Supplier Distributor Margin analysis, Variance analysis Control vs. Open state analysis Price Waterfall Business rule exception reporting (pricing best

practices that are adhered to and not adhered to and the number of such occurrences)

Line-wash report Pennies pinched analysis National account reporting

Key Benefits

Closed loop Planning and Sales Execution Improved ROI for Promotion Planning based one

event level plan vs. actual analysis Actionable information drives improved fact-

based decisions

Integrated Best Practice Recommendations

Improve Profitability

Vistaar Headquarters

200 Lanidex Plaza

Parsippany, NJ

Tel: +1 973 581 6300

European Headquarters

One Kingdom Street

London W2 6PY, UNITED KINGDOM

Tel: +44 203 356 9773

Copyright © 2011

Vistaar Technologies, Inc.

About Vistaar

Vistaar is a provider of price performance management solutions. Vistaar’s pricing software enables companies to achieve pricing best practices

through price analytics, price optimization, price list management, and deal management. Vistaar is working with companies such as AMD, Beam

Global, Cisco, Ford and GE to transform pricing operations into a strategic advantage. For these companies, Vistaar pricing software drives

measurable price and margin improvements that deliver profitable growth and maximum shareholder value. Vistaar’s operations include six offices

across North America, Europe and South Asia.

DATASHEET // Vistaar Price and Promotion Solutions for Beverage Alcohol Companies Page 4

WHY VISTAAR?

Vistaar Value Proposition

Configurability

Proven ability to model wine, spirits & beer industry’s

specific business structure, financial model & processes.

Flexibility

Ability to add and customize tools that are highly specific

to your needs and integrate those into your

environment.

Extensibility

Ability to add your modeling, IP, algorithms. Also,

ability to add functionality in the future.

Adoption

Familiar Excel interface, easy to use UI, and ability

to incorporate existing models to facilitate user

adoption and transition.

Vistaar Value Elements

Enterprise-class flexible & extensible platform

Representation of company’s structure, business, data and processes via Industry templates

Industry-specific analytics library

Workflow & control

Pricing Rules & Best Practices

Optimization Science

Information at point of need

Easy adoption

Integration across functions

Superior customization & support

TYPIAL SCENARIOS WHERE VISTAAR ADDS VALUE:

Benefit Scenario 1: Use Vistaar to align price-image with brand positioning and avoid unintended margin expansion downstream in the value chain by methodically analyzing price structures from FOB-to-Shelf, consistently maintaining price structures across open and control states, and gaining control over deal proliferation chaos.

Benefit Scenario 2: Use Vistaar to improve negotiation leverage with distributors by giving the field visibility into accurate data such as price and volume trends, competitive market trends and split-case charges. Then use “what-if” simulation analysis on price structures to evaluate pro-forma P&L impact at product, brand, account, market, and channel roll-ups.

Benefit Scenario 3: Use Vistaar to run effective promotions and increase ROI by optimizing the timing and depth of promotions for each product in the portfolio, leverage internal and market data sources to understand price-demand sensitivities, and calibrate the trade-offs between volume vs. contribution profit.

Benefit Scenario 4: Use Vistaar to minimize deal-incentive payout leakage by automating & monitoring distributor invoicing accuracy against the agreed terms of the price structures.

Benefit Scenario 5: Use Vistaar to reduce pricing deviation from intended brand strategy by aligning price and promotion plans with your business plans, monitor plan-to-actual variances, and quickly respond to market developments thru collaborative planning and data-driven, volume vs. profitability trade-off analysis.