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

Company Roles

Retail Promotion Planner

Retail Warehouse Specialist

Retail Store Manager

Retail Sales Person

Retail NonSeasonal Purchaser

Create promotion

Retail Promotion Planner

Process Flow in Retail Promotion

Create promotio n with budget check? Display promotion Create purchasing conditions

Create discount

Save price plan

Create coupon

Ret. Pricing Manager

Create article grouping

Create bonus buy

Create promotions w/ budget check

Step 3: Price plan approval

Step 4: Create conditions

Change validity period of promotion

Step 5: Activation of price plan

Check promotion sales prices

Retail Markdown Planner

Step 1: Create promotions price plan

Select price plan in tree

Step 2: Release price plan

Retail Warehouse Clerk

Process Flow in Wholesale

Retail Promotion Planner
Create promotion without budget check Assign further sales agreements to a promotion

Activate prices

Evaluations

Retail Sales Person

Create sales order

Create Billing Document

Retail NonSeasonal Buyer

Display Outbound Delivery

Retail Warehouse Specialist

Create delivery

Create transfer order

Confirm TO and post goods issue

Process Flow for Promotion

Promotion Planning
Promotion type Reference promotion

Higher-level?
Create promotion

Article Planned currency

Promotion periods
Enter promotion data
Quantity planning

Subsequent processing

Coupons
Additional assignments

Enter planning data Assign site groups

Price planning

Period-based

Discounts Bonus buy

Within the promotion For all promotions

Subsequent Processing for Promotions

Promotion Planning

Promotion subsequent processing

Listing
Supply source determ.

Announcement

Alloc. table

Additionals

Price activation

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

DC: XXD1

Internal Distribution Channel :XD

Stores: xxs1

xxs2

xxs3

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 freegoods discounts. Quantity-based and valuebased 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 Practices for - SAP Help Portal help.sap.com/.../735_Scen_Overview_EN_FR.p pt - United States Sap IDES IS RETAIL.