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Component documentation Promotion Locate the document in its SAP Library structure

Purpose

This component allows you to create promotions to be able to sell articles at a price lower than the standard price. Promotions can be either for merchandise purchased at a particularly good price from a vendor, or for reduction in stock.

You can create both retail promotions (for sales to anonymous consumers) or wholesale promotions (with special prices for known customers in your customer master data). Promotions are planned at company level with data being downloaded to various sites at the appropriate time.

Note

If you want to create wholesale promotions where the customers involved are known, you must create the following data records for every customer (if you have not already done so):

·         Customer master records

·         Site master record (maintenance identical to Retail sites)

This way, all the subsequent processing functions that exist are also available for wholesale.

The exact scope of a promotion and the results you expect to achieve can be carefully planned in advance. The planned sales - both for the promotion as a whole and for individual articles - can be planned with key figures such as purchase price, sales price, merchandise quantity, and logistics units (for example, pallets), and then compared with previous promotions.

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Implementation Considerations

These functions are part of the business function Retail Enhancements (ISR_RETAILSYSTEM) that you usually activate with the Retail business function set.

This application component can be used for the following purposes:

·        For temporarily overwriting standard prices for certain articles for a certain period of time.

·        For planning and controlling promotions at company level for various stores.

·        For automating various aspects of promotion processing.

·        For monitoring the success of a promotion against the planned sales quantity in real time.

·        To better evaluate and fine-tune your promotion strategy by comparing past promotions with one another and with the planned sales quantities.

Integration

To create promotions, you must first configure the article master data and Retail pricing components.

You also need the following components for the following functions:

Required function:

Required component:

Automatic allocation of promotion merchandise to sites

Allocation

Linking of promotion articles with special texts and photographs for use in advertising

Document Management

Taking account of promotions in stock replenishment

Replenishment

Wholesale promotions creation for known customers

Customer Master Data

Features

·        Automatic download of promotion prices to POS systems on a specified validity date and automatic resetting of standard prices when the promotion is over.

·        The option to control the degree of store participation (mandatory quantities of merchandise for each store, optional quantities, optional participation).

·        Assignment of special purchase or sales agreements to promotions.

·        Assignment of themes and product catalogs to promotions.

·        Option to set different validity periods and/or delivery dates for stores taking part in the promotion.

·        Option to set validity periods for purchasing, sales, and deliveries, for both retail and wholesale customers.

·        Announcement of upcoming promotions in stores (optional).

·        Automatic allocation of merchandise to stores (optional).

·        Split valuation of promotion and normal stock (optional).

·        Automatic update of sales quantities and other promotion data (during POS inbound processing) while a promotion is running.

·        Automatic resetting of article prices to standard prices when a promotion ends (unless another promotion follows immediately or overlaps with the first one).

·        Automatic promotion determination when creating sales orders and purchase orders as in POS interface - inbound.

·        Variety of reports and analyses available for evaluating promotions.

Note

For the price changes in a promotion you can use the Price Planning Workbench (PPW).

For more information, see Price Planning.

Constraints

The following functions are not included in this component:

·        Automatic triggering of markdowns on seasonal goods. Although this feature exists in SAP Retail, it is mapped by the markdown planning component and not by the promotion component.

·        Automatic triggering of purchase orders when promotion stock is depleted. Replenishment planning does take promotions into account, whereas quantities are merely defaulted by the system.

See also:

Assortment

Structure linkAllocation

Structure linkPOS Interface – Outbound

Season

Retail Pricing: Currency Conversion

 

 

 

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