Patent Document ID: 8170907
Application ID: 12145929
Patent Status: 1

Claim One:
1. A system for optimizing incentive-based spending parameters associated with goods provided by a manufacturer in fragmented markets, the system comprising: a computer having a processor and memory; a data collection component in communication with the processor and configured to aggregate data for sales of goods associated with a plurality of retailers; a segmentation module controlled by the processor and configured to separate the aggregated data corresponding to retailers into coarse segments based on a predetermined portion of the plurality of retailers, the coarse segments separated in accordance with a volume of sales for each retailer irrespective of the value of the corresponding volume of sales; an analysis module controlled by the processor and configured to apply regression analysis to each of the coarse segments, the regression analysis controlled by the processor based on key segmentation variables to determine a primary key segmentation variable and a secondary key segmentation variable, the primary and the secondary key segmentation variables having a highest correlation with sales revenue; the segmentation module configured to further separate the aggregated data corresponding to retailers into sub-segments based on predetermined ranges of the primary key segmentation variable, and further divide the sub-segments into final sub-segments based on predetermined ranges of the secondary key segmentation variable, wherein the number of final sub-segments is between about 8 and about 20 ; the analysis module configured to apply regression analysis to each final sub-segment to identify incentive-based spending parameters having a highest correlation with sales revenue; the analysis module configured to generate, under control of the processor, for each final sub-segment, one or more response curves corresponding to the identified incentive-based spending parameters; and a report generator controlled by the processor and adapted to provide a graphical output of the response curves, the respective response curves providing an indication of a relationship between a selected value of the identified incentive-based spending parameter and a profit level of the manufacturer wherein the manufacturer is associated with at least 1 million selling entities in a fragmented market.