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PROMOTION

MANAGEMENT
IN SAP IS-RETAIL
JAE 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.
Stake holders for promotion
operation
Create
promotion

Process Flow in Retail Promoti


Retail Promotion Planner

Create
promot
ion
with
budget
check?

Display
promotion
Create
purchasing
conditions

Create Save price


discount plan

Create
coupon
Ret. Pricing
Manager

Create Create Step 3: Step 4:


article Create promotions Price plan Create
grouping bonus buy w/ budget approval conditions
check

Change Step 5:
validity Check
period of Activation promotion
promotion of price plan sales prices
Markdown
Planner

Step 1:
Retail

Create Step 2:
Select price Release
promotions plan in tree price plan
price plan
Warehouse
Retail
Clerk
Process Flow in Wholesale
Promotion
Planner
Retail

Create Assign further


promotion sales Evaluation
without budget agreements to Activate prices s
check a promotion
Retail Sales
Person

Create sales Create Billing


order Document
Retail Non-
Seasonal
Buyer

Display
Outbound
Delivery
Warehouse
Specialist
Retail

Create transfer Confirm TO


Create delivery order and post goods
issue
Process Flow for Promotion
Promotion Higher-
Promotion type
Higher-
level?
level?
Planning Reference Create
promotion
promotion Article
Article
Planned
Planned
currency
currency
Promotion
Promotion periods
periods

Enter promo-
tion data
Subsequen
t
Quantity
Quantity
processing
planning
planning
Coupons
Coupons Enter Price
Price planning
planning
planning
Additional data Period-based
Period-base d
assignments
Assign site
Discounts
Discounts groups
Bonus
Bonus buy
buy
Within
Within the
the promotion
promotion
For
For all
all promotions
promotions
Subsequent Processing for Promotions

Promotion Planning

Promotion subsequent processing


Supply
Announce- Price
Listing source Alloc. tableAdditionals
ment activation
determ.

Retail price calculation

Assortment list POS data


TODAYS PRESENTATION SCENARIO
To 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
Articles 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

Store
distributional
channel: XS

Consumer
external
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
Subsequent processing
1.Supply source determination and Price activation
1.1 Sales price calculation for stores after price
activation
T-Code : VKP5
2.Site groups and quantities
3.Allocation table
4.Price Conditions
5.Free goods
6.Coupons & Bonus Buy

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.
7.Discounts
Discount : Based on article selection
KA02 Percentage Discount
KA04 Absolute discount
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 Practicesfor -SAP
Help Portal
help.sap
.com/.../735_Scen_Overview_EN_FR.ppt
-United States

Sap IDES IS RETAIL.