Free Goods in Volumes/Trade Spends Planning 

Use

You can use volumes/trade spends planning to plan free goods to be given away with a trade promotion. For example, if a customer buys 100 pieces of a particular product, the customer gets one free.

Prerequisites

●     You are using a planning profile group where the indicator New KPI flag is set and where at least one planning profile of type Free Goods is assigned.

●     In the Marketing Planner on the Products tab page, you have assigned a free goods product.

●     In the Marketing Planner on the Products tab page, you have specified how the free good should be accounted for. For example, if you are giving away one free product for every 100, should this product be included in that 100 or should it be extra. This is used later in condition generation since this information is needed for billing and invoicing purposes.

Features

Once you have made these settings, you will see new planning columns on the Volumes/Trade Spends tab page. These are

●     Free goods ratio

●     Free goods value

●     List price

The free goods and unit of measure will be shown. These are taken by default from the settings made on the Products tab page but they can be changed.

The free goods ratio is then used to calculate the number of free goods given away with a promotion. For example, you can say that you want to give a free gift away for every 10 sold. This key figure then calculates how many free goods are required for the amount of stock that you are planning to sell in your trade promotion.

The free goods value works the other way round, looking at the quantity available. In this case, you may only have a limited amount of free goods to give away. Therefore you want to calculate how many could be given away for the amount of stock that you have and what the best ratio would be.