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Function documentation Using Promotion Patterns Derived from Historical Data Locate the document in its SAP Library structure

Use

Use this function to derive promotional uplifts from historical data, create promotion patterns based on these uplifts, and apply these patterns to future promotions.

Prerequisites

You have created a promotion.

Features

Linear regression is used for analysis of the historical data. You can also choose seasonal linear regression (like forecast strategy 35)

Activities

  1. In interactive demand planning, select a promotion.
  2. This takes you to the promotion planning desktop.

  3. Choose the object view Analyze history from the workspace toolbar.
  4. In the dialog box enter the past horizon whose data you wish to analyze for promotional uplifts.
  5. The system applies linear regression to the historical data, thus creating an ex-post forecast, and displays the results in the row Ex-post estimate. The difference between the historical data and the ex-post estimate is displayed in the Promotion pattern row. Periods where the promotion pattern amounts to more than 20% of the history are highlighted in red.

  6. Select the highlighted periods.
  7. Have the system calculate a promotion pattern by clicking on Pattern in the workspace toolbar and choosing Calculate promotion pattern.
  8. Save the pattern by clicking on Pattern in the workspace toolbar and choosing Save as pattern.
  9. Create a promotion and apply to it the promotion pattern This graphic is explained in the accompanying text
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