1. P ROMOTION M ANAGEMENT IN SAP IS - RETAIL JAE KUMAR

2. WHAT & WHY (S) OF PROMOTION Purpose Promotions provide retailers as well as wholesalers with a key opportunity to position their merchandise in a competitive, aggressively-priced environment Benefits Reduce the stock existing Boost revenue of a company New product pilot test Bringing Brand awareness Key Process in this presentation Plan promotion for the launch of a new article through promotion. Create article master,Site master Create promotion configuration for this scenario Create a promotion in sap system Subsequent processing of the promotion Merchandise distribution using PUSH process for of the promotional article.

3. PRESENTATION AGENDA To create promotion. Perform subsequent processes. Execute promotion. Check promotion price for stores.

4. Company Roles Retail Promotion Planner Retail Warehouse Specialist Retail Store Manager Retail Sales Person Retail Non- Seasonal Purchaser Stake holders for promotion operation

5. Process Flow in Retail Promotion Retail Promotion Planner Create promotio n with budget check? Create purchasing conditions Create promotion Select price plan in tree Create discount Ret. Pricing Manager Retail Markdown Planner Retail Warehouse Clerk Display promotion Save price plan Create coupon Create article grouping Create bonus buy Create promotions w/ budget check Step 1: Create promotions price plan Step 2: Release price plan Step 3: Price plan approval Step 4: Create conditions Check promotion sales prices Step 5: Activation of price plan Change validity period of promotion

6. Process Flow in Wholesale Retail Promotion Planner Create promotion without budget check Retail Sales Person Retail Non- Seasonal Buyer Assign further sales agreements to a promotion Activate prices Create sales order Retail Warehouse Specialist Create Billing Document Create delivery Create transfer order Confirm TO and post goods issue Evaluations Display Outbound Delivery

7. Subsequent processing Create promotion Assign site groups Additional assignments Enter promo- tion data Enter planning data Quantity planning Price planning Period-base d Higher-level? Article Planned currency Promotion periods Within the promotion For all promotions Discounts Bonus buy Reference promotion Promotion type Promotion Planning Coupons Process Flow for Promotion

8. Promotion Planning Announce- ment Alloc. table Supply source determ. Additionals Promotion subsequent processing Price activation Listing Assortment list POS data Retail price calculation Subsequent Processing for Promotions

9. T ODAY ’ S PRESENTATION SCENARIO To plan and activate a promotion for retail stores & To distribute the article using an Allocation Table(Push Process) BASIC ASSUMPTIONS : 1.Retail company is using SAP IS-Retail as an ERP tool for Master data/ Promotions /Pricing. 2.A new Article is about to be launched/purchased within the retail company. 3.The article has already been purchased by the company and kept in stock at the warehouse using the PUTAWAY process. 4.Promotion is planned and processed with reduction on price. 5.Country is India and Currency is INR. 6.No budget is considered.

10. Master data used in this promotion New Single article no – 582 Vendor -98 DC – XXD1 Stores- XXS1,XXS2,XXS3 Promotion – xxx5 Merchandise distribution-Push process Docs generated – Stock transport order from DC to stores Promo business Scenario Promo offer : Provouge shirts at JUST RS1000 Article’s normal price : 582 = 1413 INR Promo price –Rs1000 Promo date – 1.08.2012 to 10.08.2012 Pricing 2-steps Mark up DC Chain – 10% Mark up Store Chain – 60%

11. Site Structure DC: XXD1 Internal Distribution Channel :XD Stores: xxs1xxs2xxs3 Consumer external Store distributional channel: XS

12. Article -582 Basic Data

13. Listing and purchasing data

14. Logistics data : DC and Store

15. Site Master :

16. Price Calculation before promotion: VKP5

17. Promotion Configuration SPRO-> IMG 1.Promotion type

18. 2.Promotion category 3.Promotion Theme

19. Path for promotion in SPRO

20. Creation of promotion: WAK1

21. Promotion Fast entry /Planning:

22. Price and Quantity Planning for the whole promotion

23. Internal site group creation only for this promotion

24. 1.Supply source determination and Price activation Subsequent processing

25. 1.1 Sales price calculation for stores after price activation T-Code : VKP5

26. 2.Site groups and quantities

27. 3.Allocation table

28. 4.Price Conditions

29. 5.Free goods

30. Coupons is an Article in ISR Sales transaction in which special conditions are granted when certain products are bought together. The conditions can be special prices, fixed discounts, percentage discounts or free- goods discounts. Quantity-based and value- based scales can be created for the conditions. A bonus buy can either be a multi-deal or a combination deal. 6.Coupons & Bonus Buy

31. Discount : Based on article selection KA02 Percentage Discount KA04 Absolute discount 7.Discounts

32. Follow on Document creation :STO (UB) Using allocation Table:

33. Post promotion process Delivery /Goods Issue docs are created in DC is done as per the dates mentioned. Good receipt is done at stores and articles are sold at promotional prices. Stocks are adjusted in Allocation table as per the receipt at stores correspondingly.

34. Implementation process

35. Promotion execution using a closed loop BI system

36. Summary Promotion management basics. Step by step configuration for promotion based on an example. Discussion about other conditions in promotions. Closed loop BI system integration for effective promotion planning and execution. THANK YOU!

37. Resources SAP BEST PRACTICES SAP Best Practices for - SAP Help Portal help.sap.com/.../735_Scen_Overview_EN_FR.p pt - United States Sap IDES – IS RETAIL.