Promotion Management for Retail at Brookshire Grocery Company Cathy Cockrell, Terry Gilbert, and Ina Viljoen
LEARNING POINTS
SAP PMR Overview
Brookshire Brookshire Grocery Company business goals
Brookshire’s PMR implementation experience
Our Lessons Learned
What is Promotion Management for Retail?
SAP Retail Promotions is an application that helps retailers identify the promotions that will be most profitable based on true shopper demand. SAP Retail Promotions provides support for planning promotions, forecasting their performance, and creating a single platform that allows business users to collaborate quickly and effectively throughout the entire promotion planning and execution lifecycle.
SAP Retail Promotions Objective
Connect promotion planning, creation, forecasting, and execution process to improve promotion effectiveness and profitability
Process Goals
Build Area and Block Templates used to create the Event’s page layouts that can be viewed and printed
Manage variations by product, locations, and date
Forecast impact of promotional offers & deals
Key Output
End Result is approved promotional events and offers that are transferred to ECC for execution at point of sale
SAP Retail Promotions Promotion Planning Overview Solution Components Promotion Planning
Data Management
Create Events Assign Templates
Offer Creation
Assign Offer To Event
Manage Block, Area, & Content Templates; Product & LOC Groups
.
Promotion Analysis Analysis Modeler
Product Groups Art icl e 1 Art icl e 2 Art icl e 3
Site Groups Store 1 Store 2 Store 3
Forecast
SPAR
499.
Hylder,top ogfronteri massiveg.Med 2 trælåger, 1 glaslågeog2 skuffermed metaludtræk. B136x H140xD45 cm* NormPris
Event Schedule
2999.-
Content Selection
Transfer -Event Transferred to ECC 5 weeks before Ad Break
Offer Modeling & Analysis; Vendor Funds
2500.-
LIVA kombi-skænk
-Offer Details sent to Advertising -Complex BBY Offers sent to AMS
Export to POS • POS Outbound • AMS WESOUT
2500.LIVA
SPAR 499.
kombi-skænk
Hylder,top ogfronteri massiveg.Med2trælåger, 1 glaslågeog2skuffermed metaludtræk. B136x H140xD45 cm* NormPris
2999.-
Proof Corrections
A
Advertising
A
Ad Specialists
P
Pricing Analysts
SAP Retail Promotion Glossary
Offer
Area
Event
Financial metrics and content for a Product, a groups of Products, or a category; presented to the consumer for purchase within a specific Store or Store Group and for a particular date range
Campaign
(Collection of Offers)
(Collection of Areas)
[Could be a Printed Weekly Ad Page, Mailer, Flyer]
[Could be a Printed Weekly Ad, Mailer, Flyer, In-Store Displays, etc.]
(Collection of Events)
Display Image 1
Product Headline
Product Description 1
Location (Store or Web)
Location Hierarchy
Display Promo Price
“Save” Story
(Group of Stores)
Block Elements
SAP Retail Promotion Goals/Benefits
Enable Collaboration between Departments Improve planning and execution of Promotional Activities
Automation of Promotion Creation Improved Accuracy of Promotions – Verification & System Validations Re-use Previous Promotions / Offers Product Group Library
Science-Based Forecast for Promotions More Reliable for Profit Management and Procurement Run Scenarios to Maximize Sales and Profits Identify Incremental vs. Cannibalized Sales in a Promotion Attach Vendor Funds to Offer
Promotion Process Taken On-line Improved Visibility to Cost Merchandising Layouts / Template Management Event Preview and Print
BGC Business Goals and Objectives
Enable Collaboration between Vendors, Category Managers, Marketing and Advertising within the Retailer
Ensure information is consistent throughout the Planning Process between these groups
Improve Planning and Execution of Promotional Activities
Reduce the number of Tactical Tasks
Reduce communications between Category Managers and Advertising with regarding to promotional Content
Provide iterative support for the strategic Annual/Semi-annual planning process
Incorporate re-use of previous Events thereby reducing time for Event creation
Leverage Assets from ERP and External Systems
Ensure accurate use and re-use of Master data to eliminate errors
Enable use of low resolution images which improves the proofing process
BGC Business Goals and Objectives continued … Enable Use of Templates th at reduces ti me to execute and error s in communication
Provide Templates for Pages and Displays which provide a vehicle to communicate Promotional activity between groups
Templates allow use and re-use of information by merchandising and advertising
Allow
creation and re-use of Product Groups streamlining the Buyers process
Effective cr eation and commun ication of Event Plans
Valuable time savings by enabling Event creation and management utilized by all Groups
Providing a single source for association of Promotional Offers to Events
BGC Business Goals and Objectives continued … Facilitate consistent method of creating Promotional Offers Provide a cohesive
method of Offer creation among all departments
Allow
simulation of Promotional Offers to realize the most effective Offers to promote to the consumer
Permit the use of Enable the Use
Vendor Funds in Offer to ensure proper margin calculations
of Retailer to Consumer Incentives for Complex Offers
Enable Financial Review of Promotional Offer in Context with Events Enable Financials of
Offers to be compared within the Event
Leverages the ability to
negotiate between categories for best financial performance
of the Event Shows full financial performance at Space, Enable user
provided planned quantities
Area (Page) and Event levels
BGC Business Goals and Objectives continued …
Forecast of Products wi thin a Promo tional Offer Integrate
with a science-based engine to issue Product Store forecasts based on sales history and other influencing factors Comprehensive Export of Promoti onal Information Enable
automated communications with Desktop Publishing programs
BGC Summary of Business Benefits
Improved product ivity – supporting better collaboration among vendors, marketing, Category Managers, and advertising execution groups; streamlining promotions through fewer cycles; and using resources more efficiently
Greater promot ional effectiveness – enabling the creation of relevant, timely, and targeted advertising (by product, category, and zone) via automated ad-versioning functionality
More accurate prod uct and stor e level forecasts – helping to understand the financial performance of each promotional event before making final decisions
Lower promotional costs – reducing the time required to produce advertisements as well as the number of proofs needed for printing and reviewing
SAP Retail Promotions at Brookshire’s “High Level” Event/Offer Process Flow
Brookshire’s Detailed Event/Offer Process Flow
Brookshire’s Original Project Scope and Details
End Users: Category Manager; Category Manager
Assistants
AD Specialists; Advertising CM Analytics; Pricing Analytics Merchandising; ICAs Project Note: Ramp Up Customer Original Estimated Timeline: 24
Weeks BGC Project Team: 9 Full-Time Resources SAP Project Team: 2 Full-Time Resources
14
Overview of the Ramp-Up Communication Structure
Solution Back Office
BGC PMR Project Ramp–Up Coach
Back Office Team BGC Project Team RU Owner SAP Project Team
Development SAP Support
OSS Customer Messages
BGC SAP Promotions Extended Project Timeline Sept
|
Oct
|
Nov
|
Dec
|
Jan
|
Feb
|
Mar
|
Apr
|
May
S
Complete Blueprint
Go Live Phase I – ECC Business Functions
Technical Go Live Phase II – Promotion Execution
Business Go Live Phase II – Promotion Execution
Technical Go Live Phase III - Forecasting
Business Go Live Phase III Forecasting
Technical Development and Unit Testing Complete for all Phases
07/30 – 08/27
08/27 – 11/24
11/12 – 04/22
11/12 – 04/03
08/27 – 04/03
Complete Blueprint
(Phase I)
(Phase II)
(Phase III)
FDD’s
Promotions Execution
Forecasting
FRICE
ECC Business Functions/Web Services
(Ongoing through Phases)
Blueprint Gate Review and Sign Off
New Promo Types/BB’s UAT/Training
Promotions entered into PMR AMS Interface
Historical Data Initial Loads Begin Daily Sales Loads
Technical Specs Development Unit Testing
BGC PMR Extended Project Scope
PMR and ECC are integrated Automatic flow of all Complex Bonus Buys to AMS/LogiX via NCR upgrade
Single point of Ad Promotions entry (excluding TPR’s) Analytics will be available during Ad Generation Meeting
Offer number generated in PMR flows through entire system Requires NCR modifications No changes to Retail POS
Forecast includes two years of historical sales and offer history Forecast vs Actuals Reporting
Required modifications to link sales to all PMR offers
17
SAP Retail Promotions Integration at Brookshire Grocery Company (BGC) BGC Export
5
DTP 6
BW Extraction (ZSEC)
SAP Retail Promotions
SAP ECC
Promotion
SAP BI Promotion Effectiveness Analytics
Promotion Planning
3
Released Event Plan BW Extraction
Master Data/ Inventory Outbound
1
9
DMF
Master Data, ECC Retail Event
Daily Sales Load
Sales History
2 AMS
POS
4 7
POS Outbound – Non AMS Offers
POSDM POS Inbound Processing
8
SAP Retail Promotions Change and Training Topics Advertising • Template Creation • Creation of Event • Assign Templates to Event
Ad Specialists • Create Location Hierarchy (MGR Only) • SAP Retail Promotions Overview /with Glossary - Offer Creation (Discount Price, Amount Off, % Off, Bonus Buys) • Product Groups - How to create / maintain; Naming Convention • Assign Offers to Events • Post Processing Office -Change Process Rules
Pricing Analysts • Attaching Vendor Funds to Offers • Creating VF in SAP Retail Promotions • Forecast Analysis
Brookshire’s Expected ROI
Increase in Warehouse Service level for Ad Articles
Substitute Sales
Increased Scan Gross from Increased Service Level
Labor Savings
LESSONS LEARNED
Lessons Learned
Assign a dedicated ECC Pricing & Promotions resource
Plan go-live approach early in the project
Document & finalize process flows early in the project
Ensure all parties are in agreement on scope and what it means in terms of processes, job functions and expected results
Ensure gaps are clearly defined and accommodated for, in some way
Identify RICEF objects early – during project preparation if possible
KEY LEARNINGS
PMR is the system of record for offers – feeds into ECC
Multiple areas & processes are touched
PMR offers a one-stop-shop for promotions & offers feeding into ECC, DTP, Ad creation and execution at the POS. Resultant data allows for forecasting and analytics
Sales data & promotional data is matched for forecasting
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SESSION CODE: 3203 For ongoing education on this area of focus, visit www.ASUG.com
