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Siebel Consumer Goods Guide > Trade Promotions > Scenario for Setting Up and Carrying Out Trade PromotionsBrand managers and account managers perform the process in this example scenario for trade promotions. Your company might follow a different process according to its business requirements. The account manager for a large chain of grocery stores creates a plan for account promotions applicable to the chain. The plan will include all of the retailer's account promotions for following fiscal year, but only the category of products that the account manager is responsible for selling. For the following fiscal year, the account manager can create account promotions for this plan by manually generating them from scratch, by adapting the information in a corporate promotion template that a brand manager creates, and by using a corporate promotion that a sales manager or brand manager pushes to her. In the account promotion, she includes information about the products that to be promoted, the promotional tactics to use to increase sales, the deals and spending details to provide the chain as incentive for participating in the promotion, as well as the volumes, revenues, and profits that the account promotion will likely generate. When she simulates the results for an account promotion that she creates, the Consumer Goods application retrieves the predicted lift factors from the lift factor table based on the promoted products, account, time period, and tactics for the account promotion, and then applies these lift factors to the baseline volumes to calculate incremental volumes. The total of the baseline and incremental volumes is the planned volume for the account promotion. The Consumer Goods application applies the promoted price to this planned volume to derive the planned sales revenue for the account promotion, and applies the spending rate to this planned volume to estimate the planned variable expenditures. The account manager can submit the account promotion to her manager for approval by changing the its status. Her manager can approve the account promotion (pending review and acceptance by the grocery store chain), reject the account promotion, or request more information. After the grocery store chain accepts the account promotion, the account manager recognizes this acceptance by changing its status. |
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