Handling Promotions of goods in retail industry

Link to Content's target Space :

IS-Retail - SAP for Retail - Community Wiki

Applies to:

SAP IS-Retail 

Summary

This Wiki page deals with how to handle promotion from the stage of planning till price caluclation.

Author(s):  Manish Kumar

   
Company:  
Created on:    09/02/2011
Author(s) Bio

Manish is a SAP project manager with an experience of  around 12 years in different roles across the globe.

Table of Contents
1. Promotion as an activity
2. Promotion in SAP Retail
3.Promotion Planning & subsequent Processing
4. Promotion analyses
5. Promotion in wholesale and retail as a variant
 

1. Promotion as an activity

Promotions will be done so that articles can be bought at a lower price to reduce the actual stock, to increase the turnover, or to test products.   In reference to turnover promotion is a central instrument of the trade for differentation and positioning in a agressive price- and competitive environment.

2. Promotion in SAP Retail

Promotion in SAP Retail.bmp

Promotion in SAP can be created in two ways i.e retail promotion or wholesale promotion. Retail promotion are mainly for anonymous off the shelf purchases where as wholesale promotions are with special pricing for few customers in the customer master data.  The above diagram gives an end to end digramatic process flow for promotion. The process starts with promotion planning and end with announcement and lisiting as the part of subsequent processes. At the end the business can do the anyses of the data point for a promotion campaign and and come out with with key figures like units sold, revenue made and can compare this with the planned figure for the current promotional campaign or the actual figures for p[revious campaigns.

3.Promotion planning and subsequent processing

Promotion planning.bmp

The above digram depicts the tasks performed in the planning stage of promotion.In the planning stage, the following tasks are performed

  • Specify the articles that you want to include in the promotion and the stores or customers participating in the promotional campaign.
  • Specify distribution chains, price lists, or site groups and optionally define special promotional prices for the articles, or group conditions, such as discounts for merchandise categories
  • Plan the procurement of promotional goods by determining the vendors, defining purchase prices and procurement quantitiesPromotions can also be palnned via optimization which allows the system to determine which products and/or offers to promote based on historical sales data.

Subsequent processing- These include the activities that are done post planning for the particular promotional campaign e.g source determination till announcement.  The below digram provides the pictorial representation.
Subsequent activities.bmp
 

4. Promotion Analysis
 

Promotion Analysis.bmp

The digram shows the different key figures and parameters which the business can obtain from the analysis of promotional campaign and can compare it with the planned values of the current campaign or the actual values of the previous campaigns.

5. Promotion in wholesale and retail as a variant

promotion variant.bmp

The above digram is a pictorial representation of the vaious steps done as a prt of creating a retail and wholesale promotional variant. 

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Origin blog.csdn.net/weixin_42137700/article/details/121253340