Business planner

1. A method for predicting the profit attributable to a proposed sales promotion of a product, wherein the product has a wholesale price and a manufacturing cost per unit sales, the method comprising using a computer to perform the following steps:

establishing a base volume for sales of the product in the absence of promotions, wherein the establishing act includes performing non-parametric regression of historical shipping data;

determining a sales lift for a plurality of single promotions;

correlating the sales lift with promotion information to provide a sales lift model;

proposing a promotion having a cost per unit sales for a promotion time period and having a planned sale price for the product;

applying the sales lift model to the proposed promotion to predict sales of the product for the promotion time period;

calculating manufacturer profit based upon the product's predicted sales, cost per unit sales for promotion, wholesale price, and manufacturing cost per unit sales during the promotion time period.

2. The method of claim 1 , wherein the promotion is selected from the group consisting of a temporary price reduction, a distributed coupon campaign, an in-store coupon campaign, a loyalty card promotion, a rebate, and an advertised price reduction.

3. The method of claim 1 , wherein the promotion is selected from the group consisting of a sweepstakes, a free gift offered with purchase of the product, and an attached coupon for reduced cost for another service or product.

4. The method of claim 1 , further comprising determining the expected cost incurred by customer forward buying based upon past forward buying behavior.

5. The method of claim 1 , wherein the establishing act includes analyzing point-of-sale data from at least one time period lacking a promotion.

6. The method of claim 1 , wherein the establishing act includes analyzing product shipping data.

7. The method of claim 1 , wherein the establishing act includes Kalman filtering historical shipping data.

8. The method of claim 1 , wherein the establishing act further comprises:

obtaining a time series of shipping data;

normalizing the time series;

truncating large peaks in the time series associated with promotions;

applying a numerical tool to the time series selected from a dynamic linear model or a Kalman filter;

performing regression on the time series to obtain regression estimates;

smoothing the regression estimates; and

applying the regression estimates to predict base volume for the promotion time period.

9. The method of claim 1 , further comprising modeling cross elasticity between products.

10. The method of claim 1 , further comprising modeling cross elasticity between brands.

11. The method of claim 1 , further comprising modeling cross elasticity between products from different vendors.

12. The method of claim 1 , further comprising providing historical point-of-sale data for the product or a related product category during a time period including a plurality of single promotions.

13. A method for predicting the profit attributable to a proposed sales promotion of a product, wherein the product has a wholesale price and a manufacturing cost per unit sales, the method comprising using a computer to perform the following steps:

establishing a base volume for sales of the product in the absence of promotions, wherein the establishing act includes Kalman filtering historical shipping data;

determining a sales lift for a plurality of single promotions;

correlating the sales lift with promotion information to provide a sales lift model;

proposing a promotion having a cost per unit sales for a promotion time period and having a planned sale price for the product;

applying the sales lift model to the proposed promotion to predict sales of the product for the promotion time period;

calculating manufacturer profit based upon the product's predicted sales, cost per unit sales for promotion, wholesale price, and manufacturing cost per unit sales during the promotion time period.

14. A method for predicting the profit attributable to a proposed sales promotion of a product, wherein the product has a wholesale price and a manufacturing cost per unit sales, the method comprising using a computer to perform the following steps:

establishing a base volume for sales of the product in the absence of promotions, wherein the establishing act further comprises:

obtaining a time series of shipping data;

normalizing the time series;

truncating large peaks in the time series associated with promotions;

applying a numerical tool to the time series selected from a dynamic linear model or a Kalman filter;

performing regression on the time series to obtain regression estimates;

smoothing the regression estimates; and

applying the regression estimates to predict base volume for the promotion time period;

determining a sales lift for a plurality of single promotions;

correlating the sales lift with promotion information to provide a sales lift model;

proposing a promotion having a cost per unit sales for a promotion time period and having a planned sale price for the product;

applying the sales lift model to the proposed promotion to predict sales of the product for the promotion time period;

calculating manufacturer profit based upon the product's predicted sales, cost per unit sales for promotion, wholesale price, and manufacturing cost per unit sales during the promotion time period.