Promotions
- 1.1 Promotion Overview
- 2. Promotion History Analysis
- 3.1 Select item into Promotion
- 4. Promotion Demand Plan
1.1 Promotion Overview
This view is an overview of all promotions, where all important data is displayed for each promotion.
You can drill down based on the Promotion Status; Not started, Progress, Finished. If the promotion has not started, it is possible to edit the name, promotion attributes, begin and end date, and the promotion description. If the promotion is finished, you can still edit the promotion attributes. If you like to delete a promotion, you can easily do that here by using the Delete button to the right.
2. Promotion History Analysis
The views belonging to section 2 show detailed historical analysis of each promotion. All six views are structured in the same way; the first columns give general information, and the columns to the right show performance or results in margin, turnover or as sold quantity. However, the views differ by the level of analysis.
The Promotion History Analysis views are:
- 2.1 Promotion History Analysis
- 2.2 Promotion Vendor History Analysis
- 2.3 Item Promotion History Analysis
- 2.3 Item Promotion History Analysis - Correlated and Similar
- 2.4 Promotion Line History Analysis
- 2.4 Promotion Line History Analysis - Correlated and Similar
2.1 Promotion History Analysis
All finished promotions are listed here, and you can analyse how they were set up and how they performed.
Most of the columns are self-explanatory, but here is a more detailed description for some of the columns:
- Vendor Count - How many vendors were a part of this promotion. The link will direct to view [2.2 Promotion Vendor History Analysis].
- Item Count - How many items were a part of this promotion. The link will direct to view [2.3 Item Promotion History Analysis].
- Actual vs. Smoothed Margin - The difference between actual margin and the smoothed margin. The smoothed margin is what would have happened if there was no promotion (see promotion smoothing for more information). So this measure is comparing what was sold versus the estimation of sale margin if there had not been a promotion.
- Similar Item Margin Effect - This is the difference between the actual sale margin and the forecasted sale margin for similar items, i.e. the effect the promotion had on similar items. By clicking the link, you are directed to view [2.3 Item Promotion History Analysis - Correlated and Similar].
- Correlated Item Margin Effect - This is the difference between the actual sale margin and the forecasted sale margin for correlated items, i.e. the effect the promotion had on items that are correlated to the promoted items. By clicking the link, you are directed to view [2.3 Item Promotion History Analysis - Correlated and Similar].
- Total Effect Margin - The total effect margin is the sum of the actual margin, similar item margin, and correlated item margin.
- Promotion Contribution - Contribution from an outside source e.g. vendors. For more details take a look at view [2.2 Promotion Vendor History Analysis].
2.2 Promotion Vendor History Analysis
Here each promotion is broken down by the vendors, so the results of the promotion can be viewed by how products by each vendor performed. If you like to see how one particular vendor is performing for all promotions, you can use the drill-downs at the top to set your preferred focus on the view.
2.3 Item Promotion History Analysis
This is an overview of all items in a promotion. The first columns show the general information; promotion attributes, begin date, day count, full sales price, and promotion sale discount in percentage.
The next columns present the actual sale units and the increase/decrease in sales compared to if there had not been a promotion. The last two columns display how the promotion affected the sales on correlated and similar items. E.g. from the image below we see that during the promotion there was sold 475 more units of correlated items than was forecasted. And for similar items were sold 720 fewer items than was forecasted. By clicking the links you are directed to a more detailed view of correlated and similar items.
By using the drill-downs you can play around with how you want to focus the analysis. Default is to drill down to a particular promotion and examine how the items performed during that one promotion. For analysing how sales resulted for a certain item during different promotions, you can set the item name in the drill-downs and clear the filter for promotion name.
If you like to look at the results per item down to location, you can click the link in column “Location Count” which directs you to view “2.4 Promotion Line History Analysis”.
2.3 Item Promotion History Analysis - Correlated and Similar
While running a promotion it can affect the sales on both similar items and correlated items of the promoted items. In this view, we can analyze how the sales for similar and correlated items resulted during a promotion.
The columns present how the forecasted sale differed from the actual sale of each correlated item or similar item. Did the promotion have a halo or cannibalization effect on the items; halo meaning we sold more than forecasted, or cannibalization meaning we sold less than was forecasted. It is possible to look at the results in sales units, margin, or turnover.
2.4 Promotion Line History Analysis
Here we analyse each promotion down to item per location.
The column “Actual vs Smoothed Units” tells the increase/decrease in sales compared to if there had not been a promotion.
The last two columns display how the promotion affected the sales on correlated and similar items down to locations.
By clicking the links you are directed to a more detailed view of correlated and similar items per location.
Use the drill-downs to focus the view, and you can click the links on columns “Item name”, “Location” and “Promotion Name” as a shortcut to focus the view. Drill down to a particular promotion and compare results between locations, like shown in the image below. Set the drill-downs to only one location and analyse how one location is performing across promotions. Or, set the drill-downs to only view one item and compare it between promotions and locations.
In this example, during the promotion there was sold 360 units more than compared to if there had not been a promotion, resulting in a 50% increase in sales units.
2.4 Promotion Line History Analysis - Correlated and Similar
Analyse down to locations how the sales for correlated items and similar items resulted during a promotion. This view is the same as view “2.3 Item Promotion History Analysis - Correlated and Similar”, but here examining down to locations.
3.1 Select items into Promotion
In this view you can either create a new promotion or add new items to an existing promotion.
Create a new promotion
Select the items you like to put on promotion by using the checkboxes to the left.
You can use the “Workspace Filters” to filter by e.g. item number or category, and you can copy a list of your preferred items into the filter and then select all those items by clicking the top checkbox (see image).
When all items have been selected, select the action “Create New Promotion With Products” found in the top right corner.
In the pop-up window enter the information about your new promotion:
- Name
- Promotion Attributes
- Start Date
- End Date
- Description
Add products to existing promotion
If you like to add items to an existing promotion, select the items you want to add and click the action “Add To Existing Promotion” found in the top right corner. In the pop-up, choose the promotion you like to add your selected items.
Promotion Attributes
To classify your promotions you can create different Promotion Attributes.
It is possible to create and manage three promotion attributes, which are configured in views:
- 3.2. Promotion Attribute 1
- 3.3. Promotion Attribute 2
- 3.4. Promotion Attribute 3.
An example how to use the promotion attributes;
- Attribute 1 tells how the promotion was advertised, e.g. Flyer, TV ad, Social Media, Radio etc.
- Attribute 2 identifies how the items are arranged in stores, e.g. Shelf, Small Stand, Large Stand etc.
- Attribute 3 groups by the amount of discount, e.g. < 20% discount, 20-50% discount, > 50% discount.
4. Promotion Demand Plan
Next step after creating a promotion is to plan it. Planning promotions happens in the Promotion Demand Plan views that belong to section 4.x.
4.1 Item Promotion Demand Plan
Here we plan the sales for each item in a promotion. If you like to plan items down to locations please use view 4.2 Promotion Line Demand Plan.
Edit the sale price/sale discount after what price or discount is planned for each item. Further, edit the cost price/cost discount e.g. if the supplier is providing a discount for an item.
Then, the two data series to the left are used to plan the demand for the item.
The promotion forecast data serie is the quantity we plan to sell during this promotion. That data serie is empty at first and you should insert here your planned demand for the item during the promotion.
You can use the baseline forecast data serie to guide your planning.
The baseline forecast is the forecasted quantity that would be sold if there was no promotion.
So, use this data serie to compare and use as a baseline for when planning the promotion forecast.
Moreover, use the Total Row field to skip planning the demand down to days and instead plan for the whole promotion period. Insert the planned demand over the promotion period into the Total Row field and the demand will distribute down to days in proportion to the baseline forecast.
Use the data series promotion forecast margin and baseline forecast margin to inspect how the margin is expected to change during the promotion.
Item Promotion Demand in Sales Planner
When you have planned the sales in the promotion module, your plan will appear in the Sales Planner in the data serie “Promotions” (see image).
It is also possible to aggregate the planned promotion demand to the first day of promotion (see image). When the promotion has started, the demand reverts back to daily distribution.
4.1 Item Promotion Demand Plan - Correlated and Similar Items
Here we plan how the promotion will affect correlated and similar items. The view displays all correlated items and similar items to an item on promotion, so here it is possible to estimate whether the promotion will have a halo or cannibalization effect on those items.
The data serie Baseline Forecast Cor/Sim Item is the forecasted sale units for this period. Insert into Promotion Forecast Cor/Sim Item the quantity you plan will be sold of the similar or correlated item.
Those two data serie are connected, so when inserting into the “Total Row” field your planned demand, the quantity will distribute proportionally down to days in line with the baseline forecast.
When you have planned the sales for correlated and similar items, your plan will appear in the Sales Planner workspace in the data serie “Promotions Correlated/Similar item”.
4.2 Promotion Line Demand Plan
Here we plan the sales for each item in a promotion down to locations.
Edit the sale price/sale discount, and the cost price/cost discount for the items as needed.
The promotion forecast data serie is the quantity we plan to sell during this promotion. That data serie is empty at first and you should insert here your planned demand for the item during the promotion. You can use the baseline forecast data serie to guide your planning, but the baseline forecast is the forecasted quantity that would be sold if there was no promotion. Moreover, use the Total Row field to skip planning the demand down to days and instead plan for the whole promotion period. Insert the planned demand over the promotion period into the Total Row field and the demand will distribute down to days in proportion to the baseline forecast.
4.2 Promotion Line Demand Plan - Correlated and Similar Items
This view is almost the same as view “4.1 Item Promotion Demand Plan - Correlated and Similar Items”, but here it is possible to plan each correlated item or similar item at location level.
4.3 Promotion Vendor Contribution
If a vendor is supplying a contribution to the promotion it can be added here into the Contribution column.
