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M-Factor Awarded Patent for Demand Model Updates

Thursday, September 11, 2008

San Mateo, CA -- M-Factor, Inc., has been awarded a patent on tools and methods it developed to update models that forecast consumer demand. Demand models quantify the cause and effect relationship between marketing and trade promotion activities and consumer purchases in a sophisticated, algebraic representation of consumer demand. The patented technology delivers higher quality predictive demand models that accurately reflect current market conditions. This unparalleled level of model quality and flexibility is one of the key reasons why leading consumer goods companies rely on M-Factor to help them optimize their marketing and trade spending.

"Creating an accurate and consistent representation of consumer demand in today's complex market environment often requires a human analyst to guide model estimation throughout the process. The patent permits M-Factor to efficiently and accurately update and modify existing demand models as the marketing environment changes. This enables us to maintain demand models of the highest quality with a turnaround time never seen before," said Dirk Beyer, M-Factor's Chief Scientist, and a co-author of the patent.

M-Factor's model developers use the company's proprietary modeling software application. It is based on state-of-the-art statistical estimation algorithms and offers three key advantages over standard statistical software. First, an intuitive user interface, designed specifically for demand model estimations, gives modelers more insight and power, allowing early detection of abnormalities in the data and results, and quick modification and testing of model assumptions. This greatly improves modeler productivity. Second, the models are developed within the customer analytical environment in which they will be exercised. Rather than judging models only based on their statistical merits, this provides relevant context for evaluating the models in business terms, using instantly available analyses such as volume variation ("due-to") and volume decomposition. Finally, the modeling application has been specifically developed to provide transparency of the modeling process, allowing M-Factor modelers to work interactively with customers and incorporate specific business feedback. This approach is very different from most traditional "black-box" approaches to modeling and greatly increases model quality.

"With this patent, M-Factor can irrefutably claim to provide the most advanced and comprehensive solution to enable consumer product companies to achieve massive return on investments from their marketing and trade spend. This benefit is even more compelling when considered in the context of today's challenging macroeconomic marketplace and the resultant rapid changes in consumer response," concluded Lawrence Whittle, Chief Executive Officer of M-Factor.

About M-Factor

M-Factor provides dynamic profit and revenue optimization software services for leading consumer goods companies. M-Factor's Marketing Investment Management, Trade Spending Effectiveness, and Portfolio Pricing Optimization solutions empower users to continuously analyze, forecast, and optimize marketing investments and trade spend. Current clients include The Coca-Cola Company, Kellogg's Canada, Alberto-Culver, Pepperidge Farm, WhiteWave Foods, and Ocean Spray. For more information on M-Factor's solutions, please visit the company website at

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