4 Maintain Markdown Parameters

The Maintain Markdown Parameters task is used to define the promotions and clearance cadences for corporate, store-wide, or planner-specific promotions. After these are created, they are assigned to style/colors in the Develop and Approve Item Plans task.

This task contains the following steps:

• Define Promotion Calendar Step

• Define Clearance Cadences Step

Building the Maintain Markdown Parameters Workbook

To build a Maintain Markdown Parameters workbook, perform the following steps:

1. Click the New Workbook icon in the Maintain Markdown Parameters task.

   Figure 4-1 New Workbook Dialog Box

   
   

2. The Maintain Markdown Parameters Wizard appears at the Select Promotions step. If you have not previously set up promotions, only generic promotions are available for selection. Select the number of promotions you want to create and click Next.

   Figure 4-2 Markdown Parameters Wizard: Select Promotion

   
   

   If you have created promotions previously, those promotions are available for selection.

3. The Calendar step appears. Select the time periods you want and click Finish.

   Figure 4-3 Markdown Parameters Wizard: Select Calendar

   
   

The Maintain Markdown Parameters workbook is built.

Define Promotion Calendar Step

The Promotions Definition step contains two views: Promotions Definition View and Promotions Weeks View. Use these two views to discount rate, lift, lift override, and lifecycle of promotions.

Promotions Definition View

Use this view to define the lift for the entire promotion. Keep in mind that you are not defining the lift for specific weeks of the promotions but for the entire promotion in general.

Figure 4-4 Promotions Definition View

Perform the following steps to define the promotional lifts:

1. (Optional): Use DPM to change the promotion label to one that represents the event.

2. In the Reference Price Promo Disc R% measure, enter the discount percentage of the promotion.

3. Click Calculate. This automatically calculates the Promo Lift U% measure for the promotion. This is the percent of increased sales that must occur to overcome the decrease in price to sell the same dollar amount.

4. (Optional): To use a different promotional lift than the one calculated in Sls Promo Lift U%, enter it in the Sls Promo Lift U% Override measure.

   
   

   Note: If you want the override lift to be 20%, enter 120.

   
   

   If an override lift exists for a promotion, that lift is used in Develop and Approve Item Plans task. Otherwise, the lift created by the Promo Lift U% measure is used. The lift used is the same for every week in the promotion.

Table 4-1 lists the measures available on this view.

Table 4-1 Promotions Definition View Measures

Measure	Description
Reference Price Promo Disc R%	The discount percentage of the promotion.
Sls Promo Lift U%	The promotional lift. This is the percent of increased sales that must occur to overcome the decrease in price to sell the same dollar amount. The lift in this measure is automatically calculated from the Reference Price Promo Disc R% measure when the user clicks Calculate.
Sls Promo Lift U% Override	Use this measure to manually enter the promotional lift. The lift entered in this measure overrides the lift calculated in the Sls Promo Lift U% measure.

Promotions Weeks View

Use this view to define the promotional period for each promotion. The promotional periods uses the lift or lift override defined in the Promotions Definition View.

Figure 4-5 Promotions Weeks View

In this view, select the weeks that make up each promotion. This view contains one measure:

Table 4-2 Promotions Definition View Measure

Measure	Description
Weeks Active	Use this measure to select the weeks of the promotion. Promotions in Item Planning are applied for an entire week. You can also define promotions that are active in non-consecutive weeks. If you have a promotion that is active on the first week of every month, you need to set up only one promotion that is active at each of the selected weeks.

Once you have defined the promotional period and lift for each promotion, continue to the Define Clearance Cadences Step.

Define Clearance Cadences Step

The Markdown Cadence step contains one view: Markdown Cadence.

Markdown Cadence View

Use the Markdown Cadence view to define clearance cadences. Clearance Cadences are used when style/colors are ready to be put on hard clearance markdown. These cadences are available for selection in the Dashboard view of the Develop and Approve Item Plans task.

Perform the following steps to define clearance cadences:

1. Ensure that all[Calendar] is shown in the Calendar dimension.

2. In the intersection of the Basis (Year/Item) measure and the all[Calendar] level, select what the cadence is based on. There are two options:

   • Year: Based on the absolute year. If the cadence is defined as starting on Week 36/10, it starts on Week 36 of the fiscal year.

   • Item: Based on the lifecycle of the item. If the cadence is defined as starting on Week 36/10, it starts on the first week of the item lifecycle.

   Figure 4-6 Markdown Cadence: Basis (Year/Item) Selection View

   
   

3. Define the markdown percentages in specific weeks of the cadence.

   Figure 4-7 Markdown Cadence View: Cadence 01

   
   

   Figure 4-8 Markdown Cadence View: Cadence 02

   
   

4. Save and commit the workbook.

Table 4-3 lists the measures available on this view.

Table 4-3 Markdown Cadence View Measures

Measure	Description
Basis (Year/Item)	The basis of the cadence. Options are year and item. Year: Based on the absolute year. If the cadence is defined as starting on Week 36/10, it starts on Week 36 of the fiscal year. Item: Based on the lifecycle of the item. If the cadence is defined as starting on Week 36/10, it starts on the tenth week of the item lifecycle.
MD Clr U%	The markdown clearance percentage. This is applicable from the selected week onwards.