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 Maintaining Patterns

Use

Patterns represent different behavioral sequences for a promotion. They specify criticalpromotional attributes that are required when you create a promotion. Since patterns are not date specific, one pattern can be reused for many promotions.

As part of the promotion profile definition, you must assign patterns to your profile. If an appropriate pattern exists, you select it and assign it to your profile. Otherwise, you create a new pattern or modify an existing pattern as explained here.

Patterns are classified by pattern types, which are explained below.

Pattern Types

Type

Use

Sales Pattern

Represents the promotion behavior, distributed daily (or more frequently), of the goods issued from the customer distribution center and, possibly, the goods received at the store level during the promotion.

Sales patterns can be manually input or generated using report /SAPAPO/promotion_patterns_gen .

When you use the report, the system retrieves historical data for a product/location/event type combination of past promotions and calculates the average value of all related promotions. Using this data, the system generates a sales pattern.

The sum of all rows in the column Sales % must equal 100%.

Distribution Pattern

Defines what is necessary for efficient replenishment to occur during the promotion -- for example, how the promotion goods are received at customer distribution centers (forward-buying to accumulate stock at distribution centers, or agreements with customers to ensure a certain delivery cycle and quantity).

You define distribution patterns by manual input.

The sum of all the rows in the columns Sales % must equal 100%.

Dynamic Pattern

Incorporates the need to consume the available promotional inventory at the customer distribution center to a certain level before generating demand for the next replenishment run.

The automated decision factor is the timing of the replenishment, which is determined based on reaching or exceeding sales thresholds expressed in percentages of total promotion quantity.

Dynamic patterns apply only to dynamic promotions, and are manually input. You fill in the percentage values for both Sales % and Distribution %. The sum of all the rows in the Distribution % column must equal 100%.

Post-Promotion Dip Pattern

A product's baseline sales can be cannibalized after you run a promotion for the same product. This effect is modeled using the post promotion dip.

You model time periods for the post-promotion dip using a "dip" pattern that you define in the promotion profile or in the pattern maintenance screen. The default start date of the post-promotion dip is one day after the promotion sales begin. You can change the default start date using the offset profile. Dips are applied first to baseline, and then the result is processed with projected sales.

Post-promotion dips are calculated or updated:

  • When you create the promotion

  • When you manually force a new promotion calculation

  • Using mass calculation via a batch job

  • When your remove the product from the promotion

  • When you add a product to a promotion

    Post-promotion dips are displayed in the Short Term Forecast screen as separate key figures. The system calculates released demand taking the post-promotion dip into account.

    The dip pattern is maintained in the same way as sales patterns and distribution patterns. The values of the dip pattern do not need to sum up to 100%.

    There is an offset in offset profile maintenance (offset #2) used to define the start date of post-promotion dip:

    Post_Dip_Start_Date= End_Ship_to_Store_Date + Offset_2

    The post-promotion dip offset can be either positive or negative. A negative offset makes the start of the post-promotion dip before the End ship to store date.

Procedure

  1. Start of the navigation path From within the SNC browser, choose Next navigation step Promotion Parameters Next navigation step Maintain Patterns End of the navigation path

  2. Select one of the following pattern types: sales, distribution, dynamic, or post-promotion dip

  3. Give the pattern a name and a description.

  4. If a pattern exists that you want to copy and change, enter that pattern name in Copy Promotion Pattern and choose the Copy button. The system will copy the existing pattern’s periods and percentages onto the screen where you can change them.

  5. To define a new pattern, fill in the table in the Pattern Details section of the screen. According to the promotion sales expectations, set the number of periods of the pattern and their corresponding sales percentages.

  6. Choose Save.

Result

You have created a pattern which can be used in defining a promotion profile.

Example

Dynamic Pattern Example

Period

Sales %

Distribution %

1

0

50

2

60

30

3

80

20

The interpretation of the dynamic pattern above is as follows:

  • ( Period 1 ) As the so-called initial build-up, with no sales data coming in, 50% percent of the total promotion quantity should be shipped. If the promotion total quantity is 1000, then 500 should be released for replenishment.

  • ( Period 2 ) If at least 60% of the released quantity has been sold according to sales data (in our example, 500*60% = 300), then another 30% of the promotion total (300), should be released for further replenishment.

  • ( Period 3 ) If at least 80% of the released quantity has been sold { (500+300)*80% = 640}, the rest ( 200), should be released.