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ICP600 SAP Trade Promotion Management

THE BEST RUN BUSINESSES RUN SAP SAP AG 2006

ICP600SAP Trade Promotion Management

Software Components:

SAP for Industries

SAP for Consumer Products

2006/Q2

Material number: 50081910

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Copyright

Copyright 2006 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted inany form or for any purpose without the express permission ofSAP AG. The information contained herein may be changedwithout prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary softwarecomponents of other software vendors.

Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of MicrosoftCorporation.

IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390,AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner,WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBMCorporation in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin aretrademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, WorldWide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license fortechnology invented and implemented by Netscape.

MaxDB is a trademark of MySQL AB, Sweden.

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SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products andservices mentioned herein as well as their respective logos are trademarks or registeredtrademarks of SAP AG in Germany and in several other countries all over the world. All otherproduct and service names mentioned are the trademarks of their respective companies. Datacontained in this document serves informational purposes only. National productspecificationsmay vary.

The information in this document is proprietary to SAP. No part of this document may bereproduced, copied, or transmitted in any form or for any purpose without the express priorwritten permission of SAP AG.

This document is a preliminary version and not subject to your license agreement or any otheragreement with SAP. This document contains only intended strategies, developments, andfunctionalities of the SAP product and is not intended to be binding upon SAP to anyparticular course of business, product strategy, and/or development. Please note that thisdocument is subject to change and may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant

the accuracy or completeness of the information, text, graphics, links, or other items containedwithin this material. This document is provided without a warranty of any kind, either expressor implied, including but not limited to the implied warranties of merchantability, fitness for aparticular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct,special, indirect, or consequential damages that may result from the useof these materials. This limitation shall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has nocontrol over the information that you may access through the useof hot links contained in these materials and does not endorse your use of third-party Webpages nor provide any warranty whatsoever relating to third-party Web pages.

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Required Knowledge:

This course requires mySAP CRM Solution Overviewknowledge, CRM Base Customizing knowledge (courseCR100) and experience with SEM Planning / CRM Analyticseither through practical experience or SEM BaseCustomizing (course SEM 210 Business Planning &Simulation)

General experience of SAP sys tems (CRM, ERP)

Recommended Knowledge:

Experience of SAP systems (BW/SEM)

Knowledge of Consumer Products industry

To gain background knowledge about Marketing you mayattend the course CRM Marketing (CR600)

Course Prerequisites

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This course is intended for the following audiences:

Project Team Members

Consultants/Solution Engineers

Duration: 5 days, Part I - III

Target Audience

User notes

These training materials are not a teach-yourselfprogram. They complement theexplanations provided by your course instructor. Space is provided on each page for you tonote down additional information.

There may not be sufficient time during the course to complete all the exercises. Theexercises provide additional examples that are covered during the course. You can alsowork through these examples in your own time to increase your understanding of thetopics.

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Course Content Part I

Unit 6 Deal Master

Unit 7 Interface to DemandPlanning

Unit 8 Sell-in, Execution andValidation

Unit 9 Post Evaluation

Unit 1 Course Overview

Unit 2 Business Process

Unit 3 Trade PromotionManagement

Unit 4 Top Down SalesPlanning

Unit 5 Promotion PlanningOnline and Offline

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Course Content Part II

Unit 14 Mobile Sales Basics

Unit 15 Reporting

Unit 16 TPM in Portal

Unit 17 Conclusion

Optional:

Account Planning

Unit 10 TPM Relevant MasterData

Unit 11 Marketing Planner(Key Figure Planning)

Unit 12 Marketing Calendar(Query, Views)

Unit 13 Prerequisites for Sell-in,Execution and Validation(Survey Suite)

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Course Content Part III

Unit 18 TPM Overview

Unit 19 Data Flow

Unit 20 Concept Customizing Trade Promotions

Unit 21 Concept Customizing Sales Planning

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Unit 6 Deal Master









Part I Course Overview

Preface

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Course Overview

Contents:

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

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Course Goals

This course will prepare you to:

to work in a project team implementing TradePromotion Management w ithin a CPG company

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Course Objectives

After completing this course, you w il l be able to :

Get an overview of the Trade Promot ionManagement Process and its Business Background

Develop a detailed hands-on understanding of theTPM process

Get a sound knowledge of the technical landscapeand architecture of the Closed Loop Process

Set up the configuration and customizing for CRMand BW/SEM

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Main Business Scenario

Consumer product manufacturers plan and coordinatetemporary marketing activit ies in cooperation withretailers to achieve a corporation-wide marketing andsales st rategy. This leads to the increased profitability o fall marketing activities that you agree upon wi th retailers,your customers. As well as increasing brand capital,name recogni tion and market share, TPM enables you toincrease sales volume and improve the placement of newproducts on the market, by

Fast planning processes

Greatest possib le planning reliability

Saving cos ts and time

Greater transparency with regard to company processes

Efficient reporting with the best possible analysis methods

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Business Process

Unit 6 Deal Master









Preface

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Drivers

Content

Benefits

Terminology

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Business Process: Unit Objectives

After complet ing th is uni t, you wil l be able to:

explain the Business Drivers behind the process

explain the Business Benefits

recognize the importance of the ConsumerProducts Business Process Trade Promot ionManagement

Trade Promotion Terminology can be located in the Glossary.

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Drivers

Drivers: Content

Benefits

Terminology

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Advert is ing & Consumer Promotions

What is Trade Promotion Management (TPM)?

TPM

Trade promotions are incentives paid by

consumer products manufacturers toretailers for merchandising support.

Manufacturer

Retailer

Consumer

TPM

The key distinction on this slide is the TPM arrows versus the Advertising & ConsumerPromotions arrow below. Just about every person from the industry will understand thisdistinction. Its important that they know you understand the distinction. We have retailersidentified in the box above, but this could also include wholesalers and/or distributors as well.

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What is Trade Promotion Management?

Manufacturers offer variousforms of value

in return for retailerpromises and actions

in hopes of generatingincremental volume & profit

Gross incremental volume

Cannibalization

Pantryloading

True incremental volume

Additional volume from

current consumers

New consumers

Tactics

Barter

Bill backs

Buy downs

Coupon redemption

Co-op advertising

Credits

Discounts

Fixtures

Free products

Frequent shopper cards Off-invoice allowances

Market development funds

Price reductions

Rebates

Slotting allowances

Volume discounts

At Corporate Level:

Develop and prioritize

merchandising plans

Buy on deal timing

Establish promoted prices

Authorize new products

At Retai l Level :

Execute merchandising

tactics and price points

Distribute and place new

items on shelf

Overview of Trade Promotion Management

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4%5%6%

6%4%4%

13 %13 %

5%

1978

Adverti sing /Media

ConsumerPromotion

Source: Donnelly Marketing and Accenture Analysis

TradePromotion

23%22%

15%

TPM Numbers and Figures

Marketing Spend for CPG Companies

% of sales

1998 2005E

Marketing spendis rising

TPM is more than50% of marketingspend

This slide refers back to the previous slide where you made the distinction between tradepromotion, consumer promotion and advertising. It shows how the costs of trade promotionshave increased dramatically over the past 25 years. Most companies would prefer to spendtheir marketing dollars against the consumer to develop their brand. However, most have seentheir trade spending increase due to the relative strength of the retail customer base. In thisgraph trade spending is portrayed to represent 13 percent of the companys annual revenue.Other studies indicate that the average is 17 percent. The range is actually 3 to 35 percent.

The key points here are that trade spending is now greater than consumer and advertisingcombined and trade spending is the second largest item on a consumer goods companys P&Lstatement behind cost of goods sold.

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Examples of Promotions

An End Aisle

A Free Standing Display

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TPM Numbers and Figures

91% of manufacturers feel TPM dollars are ineffic ient1

85% of manufacturers feel they are ineffective1

84% of promot ions are unprofitable2

Manufacturers estimate that 30% of TPM dollars go

straight to the retailers bottom line3

TPM related acti vities account fo r 25% - 30% of a

salesperson's and brand managers time4

More than 70% of CPG companies do not capture or

measure trade promotion results

Manufacturers wrote off deductions equal to 8.5% of

their revenue in 2000

Source: 1 Progressive Grocer; 2 Economist, 3AC Nielsen Supermarket Business; 4 Buzzel at Wharton

Staggering Statistics

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TPM Business Challenge

Increase impact of Trade expenses

Use historical data for sales volume forecasting

Increase bottom-up input for budgets, (volume and

spending)

Improve accuracy of volume forecast to reduce multiple

production and supply chain problems (e.g. out-of-stock)

Decrease deduction balances

improve account managers flexibi li ty and mobil ity with

remote field sales planning Reduce time spent on planning and loading numbers

Systematically integrate the whole TPM process


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?Which programsprovide the greatestvalue?

Which customers perform the best?

How are the funds being spent?

What is the returnon investment?

What is the mosteffective use of thefunds?

What uplift are we

getting?

TPM Basic Questions

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System Objectives for TPM Process

Track promotional event goals

Capture all costs

Appl y seasonal it y and li ft to p roduce more accurate

forecast

Integrate baseline and promotional volume forecast

Integrate to supply chain software

Monitor and track capabilities plan


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Drivers

Benefits: Content

Benefits

Terminology

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Benefits for TPM

Learn from your companys mis takes

Al ter fu tu re events based on current wins and losses

Increase your overall return on investment

Generate ideas at headquarter and field level

share learnings with your customer

Renegotiate promotional spending and compliance

Source: 1 Progressive Grocer; 2 Economist, 3AC Nielsen Supermarket Business, 4 Buzzel at Wharton

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Stakeholder Objectives and Requirements

Inaccurate account level forecasting Excessive safety stock requirements Out-of-stocks and returns

Reduce inventor y Reduce shipping costs

Lack of visibility to liabilities Inaccurate customer P&Ls Inability to r esolve deductions

Reduce AR balances Accurate & t imely fi n. reports Improve profit margins

Inaccurate volume & spend for ecasts Large customers wit h leverage Difficulty capturing and assigning all

customer related costs

Deliver sales volume budget Reduce cost to sales ratio Improve customer profitability

Disjointed messaging and poorchannel management

Functional silo behavior productlife-cycle management not connected

Increase market share Increase operating margin Introduce new items Improve brand equity

Heavy competition

Inconsistent alignment of resources Inventory too high and in wrongplaces or out-of-stock

Sustain revenue growth

Increase return on assets Reduce worki ng capital Predictable Results

VP Operations

VP Finance

VP Sales

VP Marketing

C-Level

Business IssuesBusiness ObjectiveRole

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Stakeholder Objectives and Requirements

Unable to identify issues until in store Account info rmation is untimely and

often inaccurate

Provide effective coverage Ensure merchandising activity is

executed

Multiple and redundant data entrypoints

Can not ensure accurate information

gets into customers systems Wasted administrative time

Deliver volume & allocated spend Provide accurate prod uct forecast

to operations Reduce unauthorized deductions

Difficulty efficiently allocating spendingdown t o obj ective level

Lack of visibility into trade promotions Unable to id entify most profitable

promotions and customers

Manage and assign t radespending effectively

Deliver trade planning str ucture Drive profitable incremental

volume

Field Salesand/or Broker

Representative

Account

Manager

TradeMarketingManager

Brand Manager Lack of visibility into trade spending Reliance upon trade and sales

management to execute trade spending

Increase market share Increase operating margin Introduce new items Improve brand equity

Business IssuesBusiness ObjectiveRole

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Drivers

Terminology: Content

Benefits

Terminology

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TPMTrade Promotion Management

The solution supports consumer productscompanies trade promot ion spending andvolume planning business processes in acustomer-centric, connected environment.

This closed loop, fully connected solutionprovides users the ability to plan, sell,deliver, execute, validate, track, monitor,pay, reconcile and evaluate the promotionand volume plans.

TPM Definition

TPM is an integrated process not a product.

The solution supports CPG companies trade promotion spending and volume planningbusiness process in a customer centric connected environment.

This closed loop fully connected solution provides users the ability to plan, sell, deliver,execute, validate, track, monitor, pay reconcile and evaluate the promotion and volume plansto increase sales, volume and evaluate the efficiency of trade spending.

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Solution Benefits of Closed Loop TPM

BENEFITS

Assign documents to act iv it ies

Standard and custom reporting

Single source for sales planning data

Remote and online sales planning function

Improved promotion vol. impact forecasting

Support top-down and bottom-up planning

Improve spending decisions

Connect trade promotion and demand planning

Connected processes for planning, logisti cal and financial

execution

Support o f payment authori zation, payment and deductionreconciliation

Enables compliance with industr y regulation thus mitigatingbusiness risks (FASB and SOX)

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Business Process: Unit Summary

You should now be able to:

to explain the Business Drivers behind the process

to explain the Business Benefits

recognize the importance of the ConsumerProducts Business Process Trade Promot ionManagement

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Trade Promotion Management

Unit 6 Deal Master









Preface

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CRM 5.0 Introduction

Content

Components and Data Flow

5 process steps

Roles

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Business Process: Unit Objectives


understand the TPM process in terms of the mySAPBusiness Suite

understand the different components used

understand which roles are involved

Trade Promotion Terminology can be located in the Glossary

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CRM 5.0 Introduction: Content


5 process steps

Roles

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Customer-Centric E-Business with mySAP CRM

The Solution is Complete

Rich Functionality and Supporting Capabilities

Todays complex customer problems require a deployable CRM solution that can directlyaddress specific challenges regardless of where or when they occur in the cycle of interactingwith, selling to and servicing an organizations customers.

mySAP CRM blends deep functional capabilities in the core areas of Marketing, Sales andService with award-winning Analytics that are directly embedded into the primary interactionchannels with which organizations engage their customers.

All of this enables the closed loop interaction cycle, underlined mySAP CRMs unique valuepropositions.

mySAP CRM is built on an open, reliable, secure and scalable technology platform

The strong and complete services offering of SAP helps to quickly implement mySAP CRM

and supports the ongoing optimization of the solution environment.

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Trade Promotion Management uses CRM 5.0 Marketing

Marketing Planner

Marketing Calendar / with Split Screen

Segmentation of Business Partners for target groupcreation

The following CRM objects are used especially for TPM

Marketing Plan / Marketing Plan element

Trade Promot ion / Trade Promotion element

Deal

CRM 5.0 Marketing and TPM

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Marketing plan

Marketing plan element

Trade Promotion/Deal

Campaign

Campaign element

Target group

Product catalog

Product

Document / URL

Overview of Symbols used in Marketing

/

Using SAP CRM marketing and campaign planning, marketing departments can plan theiractivities in a project plan structure (analogous to work breakdown structures [WBS] in ERP).The marketing planning structure and the way in which the related marketing elements areordered is completely flexible and can be created according to organizational needs.

Other marketing plans or marketing plan elements can be assigned underneath the marketingplan. You can use any number of marketing plan elements to structure a marketing plan.

Trade Promotions and trade promotion elements can be structured hierarchically undermarketing plans or set up independently

Campaigns and campaign elements can be structured hierarchically under marketing plans.This is optional. Campaigns can also be set up independent of marketing plans.

Target groups, product catalogs, products, documents, and URLs can be assigned to marketingplans or campaigns. A target group can be assigned to a marketing plan, but in this case the

assignment would simply be informational (execution of a campaign from a marketing plan orelement is not possible).

Marketing plans and campaigns (not the elements) serve as logical units from whichauthorization can be set.

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Marketing Plan (strategic planning)Defining strategic goals

Target market share, budget, etc.

Top-down allocation to brand, region, etc.

Trade Promotion (operative level)

Defining event characteristics

Dates, objectives, tactics, etc.

Defining execution parameters

Products, pri ces, etc.

Defining planning customer

Execution

Marketing Element Definitions

Marketing plans and campaigns are the elements of a hierarchically built marketing project.

A marketing plan is used for strategic marketing planning, that is, for planning a concretemarketing concept. This way budgets and deadlines are taken into consideration. A marketingplan could form, for example, the basis for next year's costing in the marketing department. Itis a management tool.

You can use any number of marketing plan elements to structure a marketing plan in the formof a hierarchy. You can assign one or more campaigns to each marketing plan.

Trade Promotions serve as operative planning. They describe special conditions planned for acustomer or customer hierarchy/hierarchy node. Conditions are valid for defined products fora certain time period.

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Deal (strategic promotion p lanning)Defining strategic guidelines

Products, timeframe, etc.

Top-down allocation to the operative level

Marketing Element Definitions cont.

Deals are an element of the strategic promotion planning.

A deal is used for strategic promotion planning, that is, for planning general conditions atheadquarter level. Deals serve as guidelines for the promotion planning on operative level, e.g.Account Level.

The prerequisites that are necessary to work with deals are in prinicipal the same as for tradepromotions.

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Create your Marketing Plan structuring your company

wide activities

for consumer activities (campaigns and campaignelements

trade activi ties (trade promotions and tradepromotion elements)

Create your Deal Hierarchy

Marketing Plan

The Marketing Planner can be used to

create a company wide consolidated marketing plan

plan and structure all marketing events and activities throughout the year for variousdepartments

maintain details for

- Consumer activities: Media Campaigns and Consumer Promotions

- Trade Promotions

create a deal hierarchy, deals and trade promotions based on the deals

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Other objects used in TPM

Among others, TPM main ly uses the fol lowing CRM ob jects

Business Partner / Business Partner Group Hierarchy

Target Group

Product / Product Hierarchy / Product Groups

Listing / Partner Product Ranges

Condition Records

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Components and Data Flow: Content


5 process steps

Roles

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Trade Promotion Management

Headquarters:

Strategic sales andpromotion planning

Customer sell-inand negotiation

Retailexecution andvalidation

PRE-

POST-

Evaluation andanalysis

Field planning

ERP

BI

BI (SEM-BPS)

CRMSCM

CRM

Mobile Mobile

Portal Roles Brand Manager Trade Marketing ManagerAccount Manager

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Trade Promotion Management - Releases

Retailexecution andvalidation

PRE-

POST-

Evalu ation andanalysis

Field planning

ERP2005

BI7.0

BI (SEM-BPS)7.0

SCM5.0

CRM5.0

CRM5.0

Headquarters:

Strategic sales andpromotion planning

Customer sell-inand negotiation

Portal Roles Brand Manager Trade Marketing ManagerAccount Manager

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CRM ServerPROMOOffer Offer

Conditions

Products

Order

Item

Item

Conditions

Products

SAP ERP

MSA

TPM Landscape minimum Releases

CO-PAPS MM FI SD

BWSEM BPS

BW 3.2 CRM 4.0 CRM 4.0

R/3 4.6C

SEM 3.2

SAP APO

SCM 4.0

Here you can see the minimum landscape, that is used for the process of trade promotionmanagement

CRM 4.0 is required as the object Trade Promotion in the Marketing Planner

SEM 3.2 is required to create Trade Promotions and plan budgets

BW 3.2 is required because the content is not available in previous releases

SCM 4.0 is required for the transfer of the baseline (Demand Planning->CRM) and theUplift (CRM->Demand Planning)

ERP 2004 or Enterprise Extension 2.0 would also be possible but enterprise is preferred

EP 5 is required for the browser based display

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CRM ServerPROMOOffer Offer

Conditions

Products

Order

Item

Item

Conditions

Products

SAP ERP

MSA

TPM/Dispute Management Landscape

CO-PAPSDispute

ManagementFI SD

BISEM BPS

BI 7.0.2 CRM 5.0 CRM 5.0

ERP2005

Netweaver 2004s

SAP APO

SCM 5.0

Here you can see the landscape, that is used for the process of trade promotion management

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Data Flow: Prerequisites

ERPCRM5.0

Trade Promotionobject (Marketing

Planner)

0CUSTOMER0MATERIAL

campaign determination,pricing procedure

master data

master data

SD

master data

BI0BPARTNER0CRM_PROD

master data

Set up the replication processes of Master Data from ERP to CRM

Set up the campaign determination and pricing procedure in ERP and replicate settings toCRM

Extract the required master data from ERP and CRM to BW. The objects 0BPARTNER,0CRM_PROD, 0CUSTOMER and 0MATERIAL are examples, many others are required

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Data Flow: Key Figures

SD

CRM

5.0

ERP

Con

ditio

nR

ecor

ds

Planning:Key Figure isBI InfoObject

CO-PA:Condition Type

Value Field

Transfer Structure:Value Field BW InfoObject

Marketing Planner:Key Figure

Condition Type

Actuals :Key Figure isBI InfoObject

When planning and releasing a trade promotion in CRM, key figures from the volumes andtrade spends tab are

saved in BW in a planning InfoCube

translated into condition types. These condition records are then transferred to SD in ERP.

For the posting of actual data, condition types are mapped to value fields in (Controlling Profitability Analysis) CO-PA.

Value fields are mapped to key figures in the transfer rules in BW.

In this way, plan and actual data can be compared.

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Data Flow: Creating a Trade Promotion

ERP

Plan/Actual InfoCube

CRM5.0

Create and saveTrade Promotion

(Marketing Planner)

Actual InfoCube

campaign, pricing conditions,rebate agreements, campaign

determination records

WBS element

plan data(volume, revenue, costs)

actual data

For InfoObject 0CRM_MKTELM

master data

copy actual data by SEM function(including hierarchy derivation)

CO-PA

SD

PS

Work Breakdown Structures (WBS) are created in Project Systems (PS). This is optional butallows to capture all costs of a trade promotion.

To determine the Campaign (Trade Promotion) additional Campaign Determination conditionrecords are generated and replicated to ERP automatically.

Master data and plan data is pushed to BW when a trade promotion is created

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Data Flow: Demand Planning Integration

ERPSCM

Plan/Actual InfoCube

CRM5.0

Create and saveTrade Promotion

(Marketing Planner)

Actual InfoCube

uplift

(incrementalsales

volume)

plan data

copy actual data by SEM function(including hierarchy derivation)

Demand Planning

CO-PA

SD

actual databaseline(copy via SEMfunction)

Baseline forecast

Total forecast

baseline(for display)

Historical data is used to create a baseline in Supply Chain Management (SCM)

The baseline information is copied to BW and displayed to the user when creating a TradePromotion

The Trade Promotion Planner enters the Uplift for the promotion, which is then sent to SCM

The Demand Planner gets the information of the Total forecast, which includes the Baselineand Uplift information.

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5 Process Steps: Content


5 process steps

Roles

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TPM: Major Process Steps

Headquarter Planning

Consensus Plan

Top Down, Bottom Up, Middle OutBudgeti ng, Volume, Revenue,Profitability, Spending Planning

Deal / Promoti on Templates

Sell-in & Negotiation

Fact-based Propo sal Generation

Promotion Driven DemandPlanning Integrated to SupplyChain Planning

Flexible Contract Management

Retail Execution,Validation & Settlement

Pricing Conditions Connected to OrderEntry Resulting in Accurate Invoicing

Capture In-store Observations forSales Rep Execution

All Data Sen t Up-stream for Anal ysis

Pre & PostEvaluation &

AnalysisKPI Reporting

Tracking of Funds &Volume

Syndicated Data Providers

Plan vs. Actual

Field Account Planning

Pre-analysis of Events

Event based Volume andSpending Forecasts

Sales Planning: Total VolumeSales Forecasting

A 5 step closed loop process was created to describe how the process is carried out in manyCP companies.

Not all companies follow this model completely and there is no defined best practice.

Ideally the process covers the following process: First of all there is a pre-evaluation phase,followed by the head-quarter sales and promotion planning. This is the top-down phase.

Then the account managers does the bottom-up planning and the sell-in to the retail account.

After closing the deal with the retailer, the integrated and automated process runs, which iscalled Retail Execution, Validation and Settlement. This step involves a field sales repsgoing into a retail store to check that the agreement is being upheld, the validation of the eventand then settlement.

This fully automated process is not yet offered by any other software provider than SAPtoday.

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Consensus Plan (One Number Plan)Top Down, Bottom Up, Middle Out

Sales Budgeting , Volume, Revenue,Profitability, Spending Planning

Deal Creation Products, Customers,Timing, Spending Rules







Abil it y to Capture In-s toreObservations for Sales Rep Execution


Pre & PostEvaluation &Analysis

Key PerformanceIndicator Reporting

Integration f romSyndicated DataProviders

Plan vs. ActualTracking of Funds& Volume


Pre-analysis of Prior Events

Event Planning: Volume andSpending Forecasts

Sales Planning: Total Volume

Sales Forecasting

SAP TPM Delivers Business Value

Potential Real-World Problem

HQ attempts to establish annual budgets bychannel and division

When they distribute their initial figures totheir direct reports, they are sometimes metwith stiff resistance or negotiating

Their direct r eports challenge the figuresbased upon different historical data

The process can break down, take longerthan it should, breed discontent anddamage morale

SAP Solution

One integrated system where all rol es are

working fr om the same data sources and one version of the truth would preventthis occurrence

Consensus Planning: Top-down and Bottom-up

Division

Channel

Product

Sales Planning: Targets and Budgets

Revenue and Unit Volume

Profit Contribution

Trade Funds

Creation and dissemination of Deal Structure

Calendar paradigm for reviewing, creating editing

Baseline forecast determination via SCM APO

Maintain multiple versions of plans

Attach and transfer strategy documents to field

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Sales Forecasting



HQ wants to reduce the original planningbudget from $1Billion t o $800 Million.

The change message goes out, but the fieldworks on a separate system and does notupdate the cut-backs everywhere

They can not even tell what com mitmentshave already been made to the customers

It becomes a wait and see, cross yourfingers exercise to determine what is spent

SAP Solution

One integrated system wit h one set o f dataand real time visibility prevents thisbreakdown from occurring

Pre-analysis of historical performance

Download master data and planning packages

What-if scenario planning

On-line and off-line creation of trade promotions

Pre-populated volumes

Multiple merchandising tactics

Multiple payment methods

Upload promotion plan to on-line system

Approval routing via workflow

TPM BW reports

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Sales Forecasting



Sales Management is expected to report the

current liability of all TPM event spending intheir geography

Sales Manager figures that there are 1,500events in the field compr ised of multipletactics and small dollar amounts, all over100 independent spreadsheets

Sales Manager realizes there is no way toaccurately account for t he existing status ofall these dollars in t he time allowed

CFO puts tremendous pr essure on SalesManager for accurate information in orderto comply w ith FASB requirements

SAP Solution

One integrated system wit h real timevisibility makes this exercise a one minutedrill and prevents anyone in the field fromhaving to stop what they would otherwisebe doing, namely selling

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AnalysisKey PerformanceIndicator Reporting









Brand Management has cut their consumer promo tion budg et based on poor

year-to-date sales performance vs. plan They eliminate a few Free Standing Insert (FSI) coupon drops, and sampling

programs but f ail to notify the sales force of the change

The sales reps proceed to secure display support on t he assumption that thisconsumer marketing support wil l be there

The displays are built in the stores, but the product doesnt sell as expectedbecause the consumer pull never materializes

The sales force now faces some very unhappy customer store managers andhave lost much credibility. They cease selling consumer support in the future

SAP Solution

One integrated system with r eal-time updates that link con sumer suppor t totrade promotion management prevents this problem from ever occurri ng

Conduct fact-based presentations to customers

Prepare standard charts & graphs for presentation

Standard materials to support merchandising

Assess incremental risk and opportunity

Manage status changes

Automatically generate pricing condition records

Update condition records to R/3 via CRM

Update volume forecasts to APO via BW

Provide promotion contract for acceptance

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Sales Forecasting


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Retailer Buyer has agreed to allow Star Cookies Brand displays in all of their A and B sizestores during week 43

Account Manager communicates in formation to fi eld and submits forecast

Demand Planners secure volume to be delivered just in time fo r week 43

Retailer Buyer calls Accoun t Manager during week 40 and informs him there is a change;Spring Fresh will have to run w eek 42

Account Manager must revis e fo recast , change the pr ic ing conditi on records andcommunicate the change to all sales reps who have stores for that retail account

Promotion runs week 42, but displays are empty due to the product not arriving in time. Itfinally shows up a week late and gets refused. Deductions then ensue due to invoice errors

SAP Solution

One integrated system co nnected to ERP and APO would have automatically handled all the

changes with one click and drag of the mouse

Contact and Activity Management

Manage account merchandising plans

Stores to visit

Programs to pre-sell

Field sales reps capture store outlet information

All data sent upstream for analysis

Account Manager authorizes payments

Settlement via robust rebate functionality

Funds posted to general ledger accounts

Full suite of standard reports and analytics

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Sales Forecasting



Retail Buyer agreed to mandate displays in all 100stores for a fee of $2,000 per store

Account Manager then communicated thi sauthorization to field sales force

Sales Reps went out and sold d isplays to 85 of the 100stores with t he Retail Buyers mandate

Typically, an Acc ount Manager has tremendousdifficult y tracking display compliance across stores,and has difficulty pro ving that they received lesscompliance then what was promised for lower payment

SAP Solution

TPM connected Mobile Sales allows the AccountManager to send a survey to all reps with those retailstores to verify whether or not a display was obtained

This information wou ld then allow the Account Mangerto inform the Buyer of actual compliance being lowerthan 100%, thus saving the company $30,000

Contact and Activity Management

Manage account merchandising plans

Stores to visit

Programs to pre-sell

Field sales reps capture store outlet information

All data sent upstream for analysis

Account Manager authorizes payments

Settlement via robust rebate functionality

Funds posted to general ledger accounts

Full suite of standard reports and analytics

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Sales Forecasting


True customer P&L reporting

Exception and alert reporting

Sales management cock-pit

Integration of syndicated data

KPI reporting for high level analysis

Funds tracking by status & hierarchy

Multiple plan versions compared to actual

Full suite of standard reports

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Sales Forecasting



Account Manager set tles payment fo r a promotion andreleases payment not realizing that t he customer hasalready deducted for the event

Accounts Recei vable Clerk sees a deduct ion, but isunaware of a promotion for that amount. They thengather as much information as possibl e and forward itto the Account Manager for r esolution and clearance

Unfortunately the deduction came in on a separateinvoice and did not contain enough infor mation for theAccount Manager to resol ve i t. They return i t t o theAccounts Receivable Clerk for f ur ther processing

The paperwork nigh tmare continues until the companyfinally writes off the liability

SAP Solution

Full visibility via Portals for t he Account Manager andthe Account s Receivable Clerk could have prevented theAccount Manager from authori zing the payment fo r whathad already been deducted

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CEO launches a new Best Practices init iative acrossthe organization

The Trade Marketing Manager is expected to report uponwhich TPM events were most successful i n terms ofROI, volume lift and absolute profit ability. They are alsoexpected to report on which customers are mostprofitable includ ing TPM expense, cost of s ales and costof service. These results are expected to enable thesharing of B est Practices across the or ganization

It becomes an exercise in futility. After countless hourstrying to assemble the available data, reconcilediscrepancies and project unavailable data, the TPMDirector delivers the report

The CEO asks a few questions and quickly r ecognizesthat the information is no t reliable

SAP Solution

SAPs cl osed-loop, connected system captures allrelevant data in a r eal-time mode and supports all t henecessary cost c omponents for easy reporting via BW

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Roles: Content


5 process steps

Roles

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VPs of Finance, SalesMarketing, Trade Marketing

Region Sales and TradeMarketing Managers


Account Managers


Account Managers

Sales Reps for in-stor e activi ty

Account Receivable Clerks fordeductions


AnalysisVPs of Finance, SalesMarketing, TradeMarketing

Region Sales andTrade MarketingManagers

Account Managers


Account Managers

TPM: Roles Involved

There are many roles involved with the process Trade Promotion Management. This makes ita collaborative effort and the coordination of all the participants is challenging.

Other roles that could be involved include:

Demand Planner checks that production can create the right goods at the right time

Financial Planner checks that the financial goals of the promotion fit within thecompanys rules

Brand Manager checks that the brand is positioned in order to gain high market share

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Trade Promotion Management: Unit Summary


understand the TPM process in terms of the mySAPBusiness Suite

understand the different components used

understand which roles are involved

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Top Down Sales Planning

Unit 6 Deal Master









Preface

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Retail Execution,

Validation & Settlement



TPM: A Closed-loop Business Process

Headquarter: Strategic Sales & Promotion Planning

The strategic planning group sets the companys goals and distributes them through theorganization based on any business rules

The Trade Marketing Manager receives his targets, processes them and passes them on

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Roles

Content

Details of BI Sales and Promotion Planning

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Top Down Sales Planning: Unit Objectives


be able to understand the connection between thesales planning and promotion planning

be able to understand how CP companies couldplan their sales and marketing activit ies

appreciate the flexibil ity of the planning tool

Trade Promotion Terminology can be located in the Glossary

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Roles

Roles: Content


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Sales Planning Data flow (Example)

Approved Plan

Plan at Country level

Strategic Planning Group (Jack Wagner)

Top down to Product Category

Plan

App roved Plan

Plan at Country, Product Category

Trade Marketing Manager(Mike Monroe)

Top down to Channel, Customer

Plan Approved Plan

Plan at Country, Brand level

Brand Manager(Jenny Smith)

Top down to Channel

Plan

Approved Plan

Plan at Product Category, Customer

Account Manager(Sam Fisher)

Top down to Region

Plan

Approved Plan -will appear asthe Target forthe receiver ofthe budget i.e.the role below

This is an example of how a Top-Down/Bottom-Up planning can be set up in BW

The Strategic Planning Group set the goals for the entire company. These goals include thesales volume that must be achieved but also the budgets that are available. These values arecombined in a Contribution Scheme allowing profit planning

All values wil be distributed and disaggregated down to lower levels in the hierarchy

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Roles

Details of BI Sales and Promotion Planning: Content


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Planning along the Customer Hierarchy

CustomerCountry

Channel Region

OutletUSA

Mass merchant

Rema

South

Rema Store1006

Manufacturer

USA

Supermarket chainsMass merchant

Rema Store1006

Rema Store

1008

Rema Store1010

Rema Store1012

North South

Rema

Rema Store

1014

Rema Store1016

Emmas Shop

Emma'sShop1066

Emma'sShop1068

Emma'sShop1070

North South

Emma'sShop1072

Cash & Carry

Joe'sStore1106

Joe's

Store1108

Joe'sStore1112

North South

Joes Stores

Joe'sStore1114

Joe'sStore1110

Joe'sStore1116

Jim's Mart1026

Jim's Mart

1028

Jim's Mart1030

North South

Jims Mart

Jim's Mart

1032

EverythingAt A ls

1206

Everything

At A ls1208

EverythingAt A ls

1212

North South

Everything

At A ls1214

Everything at Als

EverythingAt A ls

1210

EverythingAt A ls

1216

Inter-Market1086

Inter-Market1088

Inter-Market1090

North South

Inter-Market1092

Intermarket

Emma'sShop1074

Emma'sShop1076

Jim's Mart1034

Jim's Mart1036

Inter-Market1094

Inter-Market1096

Budgets and Goals are distributed down the Customer Hierarchy

This is an example for a Customer Hierarchy that was created in R/3 and used in CRM. CRMhierarchies could also be used.

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Planning along the Product Hierarchy

ProductCategory

ProductSub-Category

ProductGroup

Sweets & Snacks

Sweets Cookies Chocolate

Premium

Star Chocolate Cookies - CPT_ST_001

Dark Chocolates Milk ChocolatesFancyFudgeBonbons

Star Almond Cookies CPT_ST_002

Star Cinnamon Cookies CPT_ST_003

Products

Star Mint Cookies CPT_ST_004

Star Cream Cookies CPT_ST_005

Planning is conduc ted at ProductCategory Level

Budgets and Goals are distributed down the Product Hierarchy

The Product Hierarchy used can be the R/3 product hierarchy (R3PRODHIER) or otherHierarchies

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Sales Planning

PlanningFolders

ProductCategory

beingPlanned

Sales Planning can be very complex and a simple example is shown here to explain thefunctionality

This example shows the calculation of a contribution margin scheme, which contains alsohistorical data (e.g. Actuals 2002) and a target column, which contains pre-given valuesfrom e.g. the CFO

Actual 2002: the historical sales volume from 2002 resulting from Sales Orders receivedinto R/3 and the values extracted to

YTD 2003: the historical sales volume for 2003 up to September (the starting point of thedemo scenario) resulting from Sales Orders received into R/3 and the values extracted toBW

Forecast 2004: is the expected volume for 2004; it is an extrapolation of 2002 and 2003(weighted average)

In the locator area (Worklist) you can insert any characteristics you want to plan on (e.g.product master/hierarchies)

All key figures listed here are just exampes and can be easily exchanged

All caculated key figures (e.g. TPM Total) are customized via a simple functionality in BW(SEM-BPS)

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Sales Planning

PlanningFolders

ProductCategory

beingPlanned

The values from the tab Overall Plan 2004 have been disaggregated to the accounts (tab:Revenue 2004 Accounts)

The user can easily compare the plan that he has approved and the amounts that the field hasapproved.

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Top Down Sales Planning: Unit Summary


understand the connection between the salesplanning and promotion planning

understand how CP companies could plan theirsales and marketing activities

appreciate the flexibil ity of the planning tool

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Promotion Planning Online and Offline

Unit 6 Deal Master









Preface

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PRE-

POST-

Evaluation&

Analysis

Customer Sell-In

&

Negotiation

Field Planning

Headquarter:

Strategic Sales & PromotionPlanning

Retail

Execution&

Validation

A Closed-loop Business Process

Field Planning

The account manager has received his goals and budgets and now wishes to create tradepromotions

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Promotion Planning Online and Offline

Contents:

Navigation through the Marketing Calendar

Promotion Planning in the Marketing Planner

Introduction to Promotion Planning in MSA

Calendar and Marketing Planner in Mobile Application

Trade Promotion and Consumer Activities (Campaigns)

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Markting Calendar

Content

Marketing Planner

Promotion Planning in Mobile Sales

Trade Promotions and Consumer Activities

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Promotion Planning Online and Offline:Unit Objectives


navigate around the Marketing Calendar

create Trade Promotions

understand the need for integration into the MobileSales Application

recognize the differences between on and off-lineplanning

understand the link between Trade Promot ions andConsumer Activties

Trade Promotion Terminology can be located in the Glossary.

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Marketing Calendar

Marketing Calendar: Content

Marketing Planner



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Calendar Usage

The Account Manager has a look at the the Marketing Objects

(Campaigns, Deals or Trade Promot ions) that concern him

Query Define which Marketing Objects are displayed

View Define how are they displayed

Period Define the time scales

Time Line Define the time period shown

Legend Define how the objects are shown

Split Screen Show related events

Split screen: show related Trade and Marketing events on one screen

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Set a promot ion overview

Single point o f entry for deal maintenance (time period, spending rules, products,geography etc.)

Trade Promotions AND Consumer Acti vities (soft and hard links)

Marketing Planning

The promotion calendar is the single point of entry for all data relating to trade promotions orconsumer activities

It is also helpful to get an overview for all promotional events

Trade Promotions and consumer events can be moved or the time periods extended/reduced

Different keys (legends) are available; showing campaign type or status in different colours

The time periods are flexible (quarter, monthly, weekly ...)

Navigation tree on the left is personally configurable (product hierarchy, cusotmer hierarchy,brand, product groups, promotion ...)

Zoom-in/zoom-out

Hard and soft-links between trade promotions and media campaigns

Comprehensive print options

Personalized queries that dictate what is shown on the calendar (e.g. show me all tradepromotions that I have created, show me all promotions for customer x)

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Calendar in the People Centric UI

In a portal the calendar has the same functionality but there are a few differences:

Queries are created in the marketing planner

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Markting Calendar

Marketing Planner: Content

Marketing Planner



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Marketing Planner

In PCUI, there are different options to access the MarketingPlanner:

Choose the Marketing Calendar as single poin t of entry

Call the Marketing Planner by marking a single trade promot ion

Choose Details from the context menu

or create a new trade promot ion and maintain the details

or

Go to the Marketing Planner directly and choose a trade promotionfrom the list or use the search functionality in the navigation area

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Marketing Planner

In SAPGUI, there are different options to access the MarketingPlanner:

Choose the Marketing Calendar as single poin t of entry

Call the Marketing Planner by a doub le-click on the promotion toview the details

or create a new trade promot ion

or

Go to the Marketing Planner directly and choose an existing tradepromot ion or use the search functionality in the navigation area

or create a new trade promot ion

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Promotion Planning

In mySAP CRM 4.0 or higher it is possible to create trade promotions inthe Marketing Planner

Details

Navigation

PCUI showing Trade Promotions in the Marketing Planner

Trade Promotion is a new object in the Marketing Planner

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Trade Promotion Details in SAPUI

Navigation

Favorites

Header

Details

SAPUI showing Trade Promotions in the Marketing Planner

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Marketing Planner online

A Trade Promot ion contains the fo llow ing detail tabs

Basic Data

Texts

Attachments

Channel

Target Groups

Products

Trade Spends

Conditions

Agreements

Allocat ions

Partner

Analysis

Administ rat ion

The detail tabs provide the necessary structure to view the information for the tradepromotion, e.g.:

Basic Data: shows all the important data, that partially are mandatory. Some of theelements are control functions, such as Planning Profile Group, Action profile

Attachments: Documents can be attached, e.g. presentation needed when visiting thecustomer

Target Groups: A target group is needed to create an

Products: Assignment of products (product groups)

Trade Spends: The fixed and variable trade spends and the uplift figures will maintained byusing the SEM Inplace

Conditions: The condition records can be seen in detail

Agreements: Agreements and their details are visible (in SAPUI this is located via themenus)

Analysis: Reports for a single trade promotion are available here

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Markting Calendar

Promotion Planning in Mobile Sales: Content

Marketing Planner



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Solutions for TPM in Mobile Sales

Remote working is important in many markets.

Account Managers need to plan promot ions off line as they areoften on the road

Field sales reps need solut ions to support s tore visits withcalendar-, activity-, survey- and order processing

Data from and to the mobile clients are replicated with the centralserver everytime the systems are connected

Nearly all functionality is available off-line as on-line.

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Mobile Sales Application Calendar

Navigation

The offline capability of the Field planning will take place in the mobile sales application(MSA).

The mobile sales application will use the same functionality as in the online application, i.e.

Marketing Calendar

List view of the calendar

Also, reporting and offline planning capability is provided in MSA

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Mobile Sales Application Marketing Planner

Navigation

Details

The same information is visible on the mobile sales application as in the online application

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Mobile Sales Application Activities

Activ it ies are used to p lan one's dail y work

Activi ties in the mobile app licat ion can be accessed

either via the Calendar

or directly via the Activities folder in the Navigation Area

Activ it ies can be linked to a trade promot ion manual ly orautomatically

Activi ties provide surveys for validating a trade promotion , e.g.

check store compliance

Activities are normally created automatically on the back of the Trade Promotion and sent tothe person responsibles MSA.

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Mobile Sales Application Activity Calendar

Activities are shown in the Activities/Calendar

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Mobile Sales Application Store Visit (Activity)

Promotion

The Activity has many details including the related Trade Promotion

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Mobile Sales Application Survey

Activities can contain surveys for the field sales force to check store compliance. This isimportant for the manager to know that the stores were in agreement with the trade promotionbefore agreeing to settle the promotion and by the fees. The manufacturer does not want topay if the retailer does not participate fully in the event

The survey details can be seen when accessing the Survey folder in the navigation area

The survey is freely definable

Survey data stored in BW can be used for reporting

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Markting Calendar

Trade Promotions and Customer Activities: Content

Marketing Planner



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Trade Promotion and Campaigns - Introduction

The Brand Manager faces the challenge to increase the overallbrand equity by:

positioning and selling existing products on the market

introducing and positioning new products on the market

selling-in to Retailers (in line with the Account Manager)

alignment and coordination of the different marketing efforts

Plan Consumer and Media Campaigns in CampaignManagement

The Brand Manager has to coordinate different marketing activities to gain overall marketshare for the brand or to increase the brand equity

Consumer and Media campaigns can be planned (e.g. product related) in line with tradepromotions

The Brand Manager could work closely together with the Trade Marketing Manager and theAccount Manager

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Consumer Activities in the Marketing Calendar

Linked trade promotion with consumer activity

Promotion

Campaign

The Marketing Calendar provides the option to see all consumer activities that are either soft-linked or hard-linked to the trade promotions.

This is realized by the split screen. The business benefit of this is that all planners havevisibility to events in the organization even if they are created by other people. This helps toreduce conflicting events.

A soft link is created if the sales organization and the product is maintained in the campaignthat corresponds to the products in the trade promotions.

A hard link can be created by establishing a fix link between the objects campaign and tradepromotion. This can only be a 1:n relationship. If the campaign is then moved, the tradepromotions follow.

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Costs can be planned for a campaign Success Key figures can be generated and saved in SEM/BW BW Reporting is freely configurable

Consumer Activities in the Marketing Planner

SEM planning functions can be used to distribute the costs to individual products to aid inproduct profitability reporting

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Data Maintenance

Separate maintenance forTrade Promotions andConsumer Activities

Target GroupsAssign Target Group

Consumer Activities in the Marketing Planner

Target Groups can be added to the campaign using the segment builder from mySAP CRM

If products are directly supported by the campaign, they can be entered on the products tab.

The assignment of a Sales organization on the cost tab is mandatory to be able to see the soft-links between trade promotions and consumer activities (BW reporting)

Product catalogs can also be assigned if they are supported

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Promotion Planning online and offline: Unit Summary


navigate around the Marketing Calendar

create Trade Promotions

understand the need for integration into the MobileSales Application

recognize the differences between on and off-lineplanning

understand the link between Trade Promot ions andConsumer Activ ities (Campaigns)

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Tools Exercises

Unit: Promotion Planning Online

Topic: Marketing Planner

At the conclusion of this exercise, you will be able to:

Use the Marketing Planner to create Trade Promotions

The CP Manufaturer is planning its Trade Promotions for the Year 2004.

Many have already been created but new ones are required. You will createTrade Promotions.

1-1 Logon on to the Training System your trainer provides with the user and passwordthat the trainer supplies

1-1-1 How can one create a Trade Promotion?

Navigate to the Marketing Calendar from the SAP Menu

Marketing -> Marketing Planning and Campaign Management ->Marketing Calendar .

When accessing the Marketing Calendar the user dependent query isshown.

Create a trade promotion.

What kind of data is filled automatically, where does this informationcome from?

Check the details for your query!

Check the User Settings in the Calendar!

Remember the Customer Defaults (see CRM CustomizingCourse!)

Where in the calendar do you create a trade promotion (next to aproduct?)?

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Choose a time period in 2004 to create your trade promotion.

Let your promotion start around the middle of the month. Please start yourpromotion on a Monday.

When creating the promotion the system calls the Marketing Planner forthe detailed maintenance of the promotion.

1-1-2 Please create your trade promotion with the following data:

Header Information:

C/2004-CPT-xxx-001 where xxx is the group number

Description: Trade Promotion Group xxx

Search valid Business Partners by using the Search Term TPM in yoursearch.

Please use one of the displayed Business Partners to create your tradepromotion for.

When starting your search you find one tab Group Hierarchy node.Choose this tab and please explain what hierachy node means!

Data maintenance - Details

Basic Data:

Please fill the Basic data as follows:

Campaign Type / Objective / Tactic: Choose the following

The campaign type is already filled!

The tactic chosen is the one that proved to be efficient. This canbe seen in the Analysis done prior to the creation of a tradepromotion.

Choose the objective and tactic you would like to see in your tradepromotion.

Priority:

Choose a priority you would like to see in your promotion.

Planning Profile Group:

Use the Trade Promotion Standard as planning profile group.

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Through the planning profile group the link to the SEM Layoutis established (refer to the Customizing Training)

Sales Area (if required see user defaults in Calendar):

Maintain the Sales Area Data as follows:

Sales Organization: US Consumer Products;

Distribution Channel: Direct Sales;

Division: Cross Division.

1-2 You want to enter additional comments to your trade promotion, as you saw that acompetitive CPG company is promoting a new product group (resembling the one

you promote) by low price offers.Add a text to comment on the strategy you have decided to use. Go to the tabNotes, choose texttype Strategy to add your comment.

1-3 Go to the products tab: Have products been assigned to the promotion? If yes,please specify why?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

If no products are defaulted, choose one or more products starting with CPT_ toplan for in your trade promotion:

1-4 How would you add an entire promotable group?

___________________________________________________________________

If you want to add a promotable group you will add it byassigning a product group.

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1-5 How would you offer the customer a lump sum payment? How would you offer adiscount? Plan Uplifts

1-5-1 You want to spend a sum of $ 10,000 as a lump sum.

1-5-2 You want to give a discount of $ 0.80 per case.

How are your trade spends distributed?________________________________________________________________

1-5-3 You expect to sell more products due to the promotion. The additionalsales volume you expect is an amount of 500.

How would you enter this amount? And what does this mean,respectively, why do you enter this amount?

________________________________________________________________

What is the uplift per week?

________________________________________________________________

Does the promotion compare well with the companys benchmark (UpliftRatio, ROI, Incremental costs and Incremental margin)? What indicatorsdo you have?

________________________________________________________________

________________________________________________________________

1-5-4 Create Conditions

1-6 Have the Pricing Conditions been created correctly?

___________________________________________________________________

Go to the conditions tab to see the condition details and verify that they are correct!

1-7 How do you find more detailed information regarding the planned figures(Analysis)? Explain the key figures you find here.

___________________________________________________________________

1-8 How can you create a hard copy of the promotion?

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___________________________________________________________________

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Solutions

Unit: Promotion Planning OnlineTopic: Marketing Planner

At the conclusion of this exercise, you will be able to:

Use the Marketing Planner to create Trade Promotions

The CP Manufaturer is planning its Trade Promotions for the Year2004. Many have already been created but new ones are required.

1-1 Logon on to the Training System your trainer provides with the user and passwordthat the trainer supplies

1-1-1 How can one create a Trade Promotion?

You can create a Trade Promotion by either using the Marketing Calendaror the Marketing Planner.

Navigate to the Marketing Calendar from the SAP MenuMarketing -> Marketing Planning and Campaign Management ->Marketing Calendar .

When accessing the Marketing Calendar the user dependent query isshown.

Create a trade promotion.

In order to create a trade promotion press your left mouse and use dragand drop to maintain the time period you want to create the tradepromotion for.

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Documents

Transcript of tpm600