Transora, the world’s largest business-to-business eMarketplace for the global consumer packaged goods (CPG) industry, announced today that it has acquired online promotions company planet U™ in an all-stock transaction. planet U works closely with leading retailers and CPG manufacturers to deliver household targeted promotions directly to consumers using the Internet and retailer frequent shopper card programs. planet U’s proprietary technology and experience with online marketing combined with Transora’s intent to provide collaborative promotions management as part of its Retail Services, will speed progress toward creating efficiency across the entire CPG value chain. Specific terms of the deal were not disclosed.
Go deeper with GlobalData
“Promotions management has long been one of the most challenging ‘pain points’ in the CPG industry. planet U represents a unique opportunity for Transora to strengthen relationships between manufacturers and retailers through efficient promotions management, producing a more personalized and satisfying shopping experience for consumers while building both store and brand loyalty,” said Judy Sprieser, Transora’s chief executive officer. “After a thorough review of the companies with offerings in the Internet promotions space, we believe that planet U has the best approach for CPG manufacturers, retailers and consumers.”
planet U will continue to operate under its own name and with its current management, according to Sprieser. planet U’s services will be backed by the full suite of Transora’s Retail Services, she explained.
“During the next year, the retail infrastructure to support electronic coupons and promotions will become a reality,” said Bill Purcell, founder and chief executive officer of planet U. “planet U will continue to aggressively expand its electronic network, while at the same time enhancing its current service offerings. With Transora, we will now be able to provide a rich supply of promotional content.”
planet U offers a variety of promotional tools, all of which can be targeted and delivered securely at the household level. The company’s flagship service is U-pons™ Internet Coupons, delivered electronically from the Internet to retailer point-of-sale systems, where consumers can redeem the offers with their frequent shopper card; or via personalized and securely printed direct mail coupons that can be redeemed anywhere that coupons are accepted. planet U recently expanded its portfolio to offer Internet Sampling and Banner Ad U-pons.
planet U offers its services across a network of retailer sites representing more than 10,000 stores, including retailers such as Kroger, Safeway, Ralphs, Giant Eagle and Shaw’s, among others. The company also operates its services from national Web sites, such as SmartSource.com.
Transora intends initially to focus on high-value solutions that can be delivered using planet U’s platform, including:
Efficient Coupon Management: CPG companies spend more than $6 billion annually on paper-based coupons, less than two percent of which are ever redeemed. planet U’s Web-enabled distribution process will support more sophisticated targeting and types of promotion.
Retail Frequent Shopper Card Applications: planet U’s “paperless coupon” program allows for the delivery of electronic coupons to consumers through retail frequent shopper cards. This platform can also be used to support loyalty points programs and other types of electronic offers, enabling manufacturers and retailers to build brand and store loyalty in tandem.
With additional development, planet U’s technology platform will provide enhanced promotions analysis and modeling capabilities that support more effectively targeted and complex promotion structures such as percent-off, cumulative rebates and subscription pricing.
J.P. Morgan acted as financial advisor to Transora for this transaction. planet U was advised by its venture capital partners and by News America Marketing, previously the company’s largest shareholder.
About Transora
Transora is the world’s largest open, standards-based business-to-business (B2B) e-marketplace for the global consumer products industry. Comprised of more than 50 major consumer packaged goods companies, Transora allows all industry participants — suppliers, manufacturers and retailers/distributors — to optimize value chain operations and improve total business productivity via the Internet. Transora will unleash companies to do what they do best. To find out more about Transora, visit www.transora.com.
About planet U
planet U is the online promotions network for the consumer goods industry that most effectively connects manufacturers, retailers, and consumers. planet U provides manufacturers and retailers with the capability to deliver highly personalized and targeted promotions across its network of retailer Web sites — representing more than 10,000 retail locations — and Web partner sites, including SmartSource.com hosted by News America Marketing. planet U has more than one million members in its network. planet U is located in San Francisco, California. To find out more about planet U, visit www.planetu.com.
