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Process documentation Promotion Processing Locate the document in its SAP Library structure

Use

This business process allows you to plan and carry out promotions.

After a promotion is planned, you can carry it out by triggering the required subsequent activities. Subsequent activities include activating prices, generating and editing the promotion allocation table, announcing the promotion, listing promotional merchandise in the sites, and determining sources of supply and additionals.

Subsequent activities are only required in wholesaling if you have created the retail customers as sites and have assigned the promotion in a site group.

A promotion is a marketing activity aimed at boosting sales. Since vendors often support marketing activities by granting special conditions, a promotion involves not only the sales side visible to the customer, but the purchasing side, too.

First a promotion is planned in advance. This involves defining the articles that are to take part in the promotion, and determining the purchase prices and sales prices. During the planning phase all the data in the promotion can be changed as required.

In wholesaling promotions, recipients of goods are usually customers that place orders for articles on promotion. Period-specific sales price conditions (sometimes at article level) are the relevant factors for these promotions. It is possible to carry out subsequent activities as in a retail promotion.

After the planning phase has been completed, a whole series of subsequent activities takes place: The promotional merchandise must be procured and split among the stores, the stores must be notified of the promotion and the necessary data prepared. The merchandise on promotion has to be labeled.

Process Flow

  1. You define the type of promotion (such as advertisement in a daily or company-own newspaper) to classify the promotion.
  2. You assign a unique promotion number to the promotion.
  3. You maintain the header data relevant for the whole promotion. This includes data on the stores participating in the promotion, their required assignment to a purchasing organization, validity periods in which the articles are on sale (to consumers or to retailers), sales price currency, name of the promotion and a comparative promotion.
  4. You can also plan the sales volume you hope to achieve with the promotion.
  5. You can maintain specific data for individual sites or site groups. This includes the date of the announcement of the promotion, the planned date of goods receipt for the stores, the listing period and the selling period.
  6. You assign the merchandise involved to the promotion. You can maintain different data for each article. This can include planned quantities, quotas, minimum order quantities for the stores, planned prices, the period in which stores can order merchandise and be supplied, as well as replenishment and return specifications.
  7. If a promotion covers a number of different areas, you assign themes to the promotion.
  8. If the promotion is to be supported by the product catalogs, you can assign a number of promotional product catalogs to a promotion.
  9. You can create promotion modules for assortment creation manually, and assign promotional articles to these.
  10. You can also maintain vendor conditions and sales conditions for the promotion. These can be conditions granted directly, free goods, or volume rebate arrangements.

    11. You can enter price changes (as percentage or absolute amount) and price point adjustment for sales prices for each individual article.

  11. You can assign articles to the themes you defined or to the promotional product catalog.
  12. Promotion planning is then complete and subsequent activities can be initiated.
  13. You can determine a valid source of supply for the articles involved in the promotion manually, or have the system propose one.
  14. You ensure that a site involved in the promotion only occurs once in the site group assigned to the promotion. If it occurs twice, you remove the duplicate assignment.
  15. To ensure that merchandise is available in the stores as required, and to ensure they are included in the assortment list, you must list the promotional merchandise in the sites involved in the promotion. You can, if desired, list merchandise in a site or site group for the validity period of the promotion only.
    If you created the promotion modules manually, the system checks for consistency.
  16. You must then activate price conditions specific to the promotion that are only valid for the period of the promotion. By activating these conditions, you trigger transfer of the data to the assortment list.

    17. You can maintain site-specific prices and quantities for promotion articles.

    You can change the validity period for the conditions or deactivate conditions.

  17. You can, if required, split up quantities of promotional merchandise among the stores.
  18. You can then notify the stores of the promotion and all the associated data using the promotion announcement function, and use this to receive site-specific replies to the notifications.
  19. You can assign the relevant additionals to the promotion or the promotional articles.

Notes and Remarks

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