PROMOTION MANAGEMENTIN SAP IS-RETAILJAE KUMAR

WHAT & WHY (S) OF PROMOTION

• Purpose • Promotions provide retailers as well as wholesalers with a key opportunity to

position their merchandise in a competitive, aggressively-priced environment• Benefits

• Reduce the stock existing • Boost revenue of a company• New product pilot test• Bringing Brand awareness

• Key Process in this presentation• Plan promotion for the launch of a new article through promotion. • Create article master ,Site master • Create promotion configuration for this scenario• Create a promotion in sap system• Subsequent processing of the promotion• Merchandise distribution using PUSH process for of the promotional article.

PRESENTATION AGENDA

• To create promotion.• Perform subsequent processes.• Execute promotion.• Check promotion price for stores.

Company Roles

Retail Promotion Planner

Retail Warehouse Specialist

Retail Store Manager

Retail Sales Person Retail Non-Seasonal Purchaser

Stake holders for promotion operation

Process Flow in Retail PromotionRe

tail

Prom

otion

Pla

nner

Create promotion

with budget check?

Create purchasing conditions

Create promotion

Select price plan in tree

Create discount

Ret.

Pric

ing

Man

ager

Reta

il M

arkd

own

Plan

ner

Reta

il W

areh

ouse

Cl

erk

Display promotion

Save price plan

Create coupon

Create article grouping

Create bonus buy

Create promotions w/ budget check

Step 1: Create promotions price

planStep 2: Release

price plan

Step 3: Price plan approval

Step 4: Create conditions

Check promotion sales prices

Step 5: Activation of

price plan

Change validity period of

promotion

Process Flow in WholesaleRe

tail

Prom

otion

Pl

anne

r Create promotion without budget

check

Reta

il Sa

les

Pers

onRe

tail

Non

-Se

ason

al B

uyer

Assign further sales agreements to a

promotionActivate prices

Create sales order

Reta

il W

areh

ouse

Sp

ecia

list

Create Billing Document

Create delivery Create transfer order Confirm TO and post goods issue

Evaluations

Display Outbound Delivery

Subsequentprocessing

Createpromotion

Assign sitegroups

Additionalassignments

Enter promo-tion data

Enter planningdata

Quantity planningQuantity planning

Price planningPrice planning

Period-basedPeriod-based

Higher-level?Higher-level?

ArticleArticlePlanned currencyPlanned currency

Promotion periodsPromotion periods

Within the promotionWithin the promotionFor all promotionsFor all promotions

DiscountsDiscountsBonus buyBonus buy

Referencepromotion

PromotiontypePromotion

Planning

CouponsCoupons

Process Flow for Promotion

Promotion Planning

Announce-ment Alloc. table

Supplysource

determ.Additionals

Promotion subsequent processing

PriceactivationListing

Assortment list POS data

Retail price calculation

Subsequent Processing for Promotions

TODAY’S PRESENTATION SCENARIOTo plan and activate a promotion for retail stores

&To distribute the article using an Allocation Table(Push Process)

BASIC ASSUMPTIONS :

1. Retail company is using SAP IS-Retail as an ERP tool for Master data/ Promotions /Pricing.

2. A new Article is about to be launched/purchased within the retail company.

3. The article has already been purchased by the company and kept in stock at the warehouse

using the PUTAWAY process.

4. Promotion is planned and processed with reduction on price .

5. Country is India and Currency is INR.

6. No budget is considered.

Master data used in this promotion• New Single article no – 582 • Vendor -98• DC – XXD1 • Stores- XXS1,XXS2,XXS3 • Promotion – xxx5• Merchandise distribution-Push process • Docs generated – Stock transport order from DC to stores

Promo business Scenario •Promo offer : Provouge shirts at JUST RS1000•Article’s normal price : 582 = 1413 INR•Promo price –Rs1000•Promo date – 1.08.2012 to 10.08.2012•Pricing 2-steps •Mark up DC Chain – 10%•Mark up Store Chain – 60%

Site Structure

DC: XXD1

Internal Distribution Channel :XD

Stores: xxs1 xxs2 xxs3

Consumer external

Store distributional channel: XS

Article -582

Basic Data

Listing and purchasing data

Logistics data : DC and Store

Site Master :

Price Calculation before promotion: VKP5

Promotion Configuration SPRO-> IMG

1.Promotion type

2.Promotion category 3.Promotion Theme

Path for promotion in SPRO

Creation of promotion: WAK1

Promotion Fast entry /Planning:

Price and Quantity Planning for the whole promotion

Internal site group creation only for this promotion

1.Supply source determination and Price activation

Subsequent processing

1.1 Sales price calculation for stores after price activationT-Code : VKP5

2.Site groups and quantities

3.Allocation table

4.Price Conditions

5.Free goods

• Coupons is an Article in ISR• Sales transaction in which special conditions

are granted when certain products are bought together.

• The conditions can be special prices, fixed discounts, percentage discounts or free-goods discounts. Quantity-based and value-based scales can be created for the conditions.

• A bonus buy can either be a multi-deal or a combination deal.

6.Coupons & Bonus Buy

Discount : Based on article selection KA02 Percentage DiscountKA04 Absolute discount

7.Discounts

Follow on Document creation :STO (UB) Using allocation Table:

Post promotion process • Delivery /Goods Issue docs are created in DC is done as per the dates mentioned.• Good receipt is done at stores and articles are sold at promotional prices.• Stocks are adjusted in Allocation table as per the receipt at stores correspondingly.

Implementation process

Promotion execution using a closed loop BI system

Summary

• Promotion management basics.• Step by step configuration for promotion based on

an example.• Discussion about other conditions in promotions.• Closed loop BI system integration for effective

promotion planning and execution.

THANK YOU!

Resources

• SAP BEST PRACTICES SAP Best Practices for - SAP Help Portalhelp.sap.com/.../735_Scen_Overview_EN_FR.ppt - United States

• Sap IDES – IS RETAIL.