1. Administering Sales Planning
  2. Configuring Key Account Planning
  3. Key Account Planning Calculations

Key Account Planning Calculations

Here are how some of the Key Account Planning measures are calculated:

  • Total Volume = Baseline + Uplift

  • Baseline = Base + Building Blocks

  • Uplift = Uplift % x Baseline for Promoted Period

  • Baseline for Promoted Period = Baseline x Total Promo Days for Each Promotion / Total Days in Period

  • Promoted Period Volume/Revenue = Baseline for Promoted Period + Uplift

  • Non Promoted Period Volume/Revenue = Total Volume/Revenue – Promoted Period Volume/Revenue

  • Total Promo Days = Total Days in a period where promotions are run. If multiple promotions are run with overlapping days, those overlapping days will be not considered. For example, if a promotion is run from 1 June to 10 June and another promotion is run from 7 June to 25 June, Total Promo Days is 25 days.

  • Promoted Volume Per Promoted Day = Promoted Period Volume / Total Promo Days

  • Variable Spends = Promoted Volume Per Promoted Day x Variable Cost Per Unit x Promoted Days

  • Trade Spends = Variable Spends + Fixed Spends

  • ROI on Uplift = Uplift Revenue - Trade Spends / Uplift Revenue

  • ROI on Revenue = Uplift Revenue - Trade Spends / Revenue

Use Cases

Key Account Planning supports the following use cases for trade promotion planning:

  • Promotion for full period—Promotions are run for the entire period(s), for example 1 March 2021 to 30 April 2021. The uplifts, variable spends, and fixed spends are spread for the entire periods. These become promoted period volumes or revenue.
  • Promotion for part of the period—Promotions are run for part of the period, for example 15 May 2021 to 30 May 2021. The baseline volume / revenue are considered for the part period and uplifts are calculated on the baseline of the promoted period. This spreads the uplifts to the part period based on date range. Fixed and variable spends are calculated and spread to these period ranges.
  • Promotion across periods—Promotions are run across periods, for example 15 June 2021 to 5 July 2021. The baseline volume/revenue are considered for each of the part periods and uplift is applied to the same. Fixed spend for the promotion is spread across the periods. Variable spends are calculated for individual periods based on promoted period volumes and revenue. Overall promotion period volume and revenue are calculated as well as variable /fixed spends across periods.
  • Promotions with overlapping days—Promotions are run for same product with overlapping periods, for example Promotion A runs from 15 May to 10 June and Promotion B runs from 1 June to 25 June. Similar to promotion across periods but for the new overlapping promotions, the promoted days are only incremental days of the baseline. In the case of Promotion B, 15 days are considered (11 Jun to 25 June, because 1 June to 10 June is already considered for Promotion A).
  • Promotions for multiple products—Promotions can be assigned to multiple products, selected using Assign Product. Products can be all leaf level products in the product or brand hierarchy or they can be selected as specific products across different product hierarchies. Uplift % is applied to each of the products based on each product’s baseline. You can also remove assignments.