Adding Building Blocks

After estimating your base forecase, use building blocks to build your baseline plan on top of the base forecast for volume or revenue.

Building blocks are adjustments or increments to the base plan based on different factors that affect additional sales volume or revenue. Use building blocks to plan items such as product display redesigns or pricing reductions. You can also define your own building blocks such as store refurbishments or placement changes. Key Account Planning provides three building blocks—Product, Pricing, Placements. Your administrator might have added additional building blocks or renamed them.

As you add building blocks, volume and revenue are recalculated so you can see the impact on the gap between the target and the baseline. When you make an adjustment, you can immediately see the impact. For example:

• Baseline volume increases due to new product packaging and new product introduction within a specific product category.
• Baseline volume increases due to superior placement with the retailer.
• Baseline volume decreases due to a store closure.

To add building blocks:

1. From the Home page, click Key Account Planning , and then click Baseline .

2. Click the Building Blocks tab.
3. Click the row for Placement, Product, Pricing, or other building blocks in your application.
4. Enter a description, and then enter values in the form. You can also create rules to derive the values you want.

   Enter values for the volume change expected from the building block, and then click Save.

Baseline volume is adjusted by an increase or decrease due to the building blocks for the corresponding time periods. Review the gap analysis again to see the impact of your changes.