Cannibalization Group
Definition
Groups together products whose sales are impacted, either positively or negatively or both, by the same promotion. The mutual dependency of sales of similar products is known cannibalization .
Use
Use cannibalization groups to model the impact of a promotion on sales of related products. You specify the cannibalization group when you create a promotion for a product. The promotions for the other products in the cannibalization group are calculated automatically.
Note
To use cannibilization groups, you must include a characteristic for the product in the planning book. If you do not use 9AMATNR for the product, you must specify which characteristic is the product in the master planning object structure. For more information, see Working with Master Planning Object Structures .
If you use cannibalization, the products that you want to plan in Demand Plnning must be defined as products in the APO master data.
Structure
The following example illustrates the structure of a cannibalization group.
A 5% discount causes sales of liter bottles of rosemary shampoo to rise by 30,000 units, causing sales of 250 milliliter bottles to drop by 3,000 units and sales of 500 milliliter bottles to drop by 5,000 units, but sales of liter bottle stands to rise by 10,000 units.
For each product you enter a cannibalization factor. This factor is a positive or negative number that represents the amount by which sales of the product are positively or negatively impacted by the promotion.
Example of a Cannibalization Group
Product |
Cannibalization Factor |
Liter bottles of rosemary shampoo |
30 |
250 milliliter bottles of rosemary shampoo |
-3 |
500 milliliter bottles of rosemary shampoo |
-5 |
Liter bottle stands |
10 |