Adding Promotions

Plan time-bound, ongoing, or overlapping trade promotions that are specifically designed for key accounts or particular product segments.

Key account managers use Trade Promotions to plan the promotions for their accounts. You can plan by volume or revenue, for one or more products. Promotion uplift is spread across products and is allocated across the periods that the promotion runs.

You also plan the costs associated with the promotion.

• Variable costs are applied to the total volume—the uplift volume plus the original baseline volume—across the promotion period.
• Fixed costs are spread across the promotion period.

The promoted volume and other measures are calculated, and charts and dashboards are updated as you make changes to the promotion.

To add a new promotion:

1. From the Home page, click Key Account Planning , and then click Trade Promotions .
2. Click the Promotions Planning - Volume tab or the Promotions Planning - Revenue tab.
3. Right-click in Set Up Promotions, and then click Add Promotion.
4. Enter a Promotion Name.
5. Select a Promotion Type, for example, Price Reduction, Display, or Leaflet, depending on what your adminstrator has provided for your business.
6. Enter a Start Date and End Date for the promotion.
7. In Uplift %, enter the percentage of incremental uplift in volume you expect due to the promotion, and then click Launch. The uplift is calculated as a percentage of the baseline volume for each product.

   The promotion is created for all level 0 members in the hierachy. The uplift volume is spread across the promotion period and is also pushed to lower level members in the hierarchy.

8. Add additional details such as variable spends and fixed costs related to the promotion, and then click Save.
   • Variable costs—Off Invoice UOM and Bill Back UOM.

     The variable costs are applied to the uplift volume plus the baseline volume across the promotion period (the promoted volume per day for applicable products).

   • Fixed costs—Feature, Display, Other.

     The fixed costs are spread across the promotion period.

   Your administrator might have added additional measures for fixed or variable spends.

   You can change values later if needed.

Assigning Products to a Promotion

After you create a promotion, associate it with one or more products.

1. In Set Up Promotions, right-click a promotion and then click Assign Product.
2. Select the product or products to associate with the promotion, and then click Launch. You can select multiple products from different parents in the Products hierarchy and apply them to the same promotion.

   Products can have multiple promotions associated with them, and the promotions can overlap.

3. To see all of the products associated with a promotion, in the Promotion to Product area, select a promotion. You see the associated volume, revenue, and trade spending for each product associated with the promotion.

Note:

To remove a product from a promotion, in the Promotion to Product area, right-click a product and then click Remove Assignment.

After adding a promotion and assigning products to the promotion, calculate the promotion, and then review the Gap Analysis, the Customer Profit and Loss, and the Promotional Profit and Loss to see how each promotion is contributing to incremental revenue or volume and trade spends.