Promotion Optimization Guide for SAP DM. Demand Management. Release 6.4. Target Audience Business Users

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1 Promotion Optimization Guide for SAP DM Demand Management Release 6.4 Target Audience Business rs Document Version October, 2006

2 SAP AG Dietmar-Hopp-Allee Walldorf Germany T +49/18 05/ F +49/18 05/ Copyright 2006 SAP AG. All rights reserved. SAP Library document classification: PUBLIC No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. Oracle, ODBC and DB2/CLI Template Library, Version , Copyright (C) Sergei Kuchin, 1996,2005 Author: Sergei Kuchin This library is free software. Permission to use, copy, modify and redistribute it for any purpose is hereby granted without fee, provided that the above copyright notice appear in all copies. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to modification without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP Important Disclaimers SAP Library document classification: PUBLIC This document is for informational purposes only. Its content is subject to change without notice, and SAP does not warrant that it is error-free. SAP MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OR OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE. Coding samples Any software coding and/or code lines / strings ("Code") included in this documentation are only examples and are not intended to be used in a productive system environment. The Code is only intended better explain and visualize the syntax and phrasing rules of certain coding. SAP does not warrant the correctness and completeness of the Code given herein, and SAP shall not be liable for errors or damages caused by the usage of the Code, except if such damages were caused by SAP intentionally or grossly negligent. Internet hyperlinks The SAP documentation may contain hyperlinks to the Internet. These hyperlinks are intended to serve as a hint where to find supplementary documentation. SAP does not warrant the availability and correctness of such supplementary documentation or the ability to serve for a particular purpose. SAP shall not be liable for any damages caused by the use of such documentation unless such damages have been caused by SAP's gross negligence or willful misconduct. Accessibility The information contained in the SAP Library documentation represents SAP's current view of accessibility criteria as of the date of publication; it is in no way intended to be a binding guideline on how to ensure accessibility of software products. SAP specifically disclaims any liability with respect to this document and no contractual obligations or commitments are formed either directly or indirectly by this document. This document is for internal use only and may not be circulated or distributed outside your organization without SAP's prior written authorization.

3 History of Changes History of Changes The following table provides an overview of the most important changes made in the latest versions. Promotion Optimization Guide for SAP DM Version Changes made by Important Changes 1.0 R. Wilcox Initial customer release October,

4 Typographic Conventions Typographic Conventions Type Style Example Text Example text EXAMPLE TEXT Represents Words or characters quoted from the page. These include field names, page titles, pushbutton labels, menu names, menu paths, and menu options. Cross-references to other documentation Emphasized words or expressions in body text, graphic titles, and table titles. Technical names of system objects. These include report names, program names, transaction codes, table names, and key concepts of a programming language when they are surrounded by body text, for example, SELECT and INCLUDE. Example text Output on the page. This includes file and directory names and their paths, messages, names of variables and parameters, source text, and names of installation, upgrade, and database tools. Example text Exact user entry. <Example text> These are words or characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Angle brackets indicate that you replace these words or characters with appropriate entries to make entries in the system. EXAMPLE TEXT Keys on the keyboard, for example, F2 or ENTER. Icon Icons Meaning Caution Example Note Recommendation Syntax 4 October, 2006

5 Contents Promotion Optimization Guide for SAP DM Contents History of Changes What is Promotion Optimization? Creating Promotion Events Creating Scenarios Constraining the Optimization Process Viewing the Price Activity Calendar Promotion Events Creating Promotion Events Selecting Locations Creating Areas Selecting Products Finish Using Areas Creating Areas Deleting Areas Approving/Unapproving Areas Creating Scenarios Area Detail Viewing Area Detail r-selected Products and Offers r-selected Products and System-Optimized Offers Selecting the Products Entering the Strategy Entering the Filters System-optimized Products and Offers Entering the Strategy Entering the Filters Copying a Scenario Searching for Products Searching by SKU or Product Number Performing a Product Search Using the Search Tab Searching with the Product Hierarchy Tab Searching with the Advanced Search Tab...19 October,

6 Contents 7 Using Scenarios Approving a Scenario Unapproving a Scenario Scenario Details Viewing Scenario Detail Adding Products to a Scenario Removing Products from a Scenario Adding Products and Offers to a Scenario Editing Offers within a Scenario Forecasting Products or Scenarios Optimizing Within the Scenario Product Details Managing Business Rules Business Rules Accessing Business Rules Setting Discount Price Business Rules Setting Discount Percent Business Rules Setting Discount Amount Business Rules Setting Buy X, Get Y Business Rules Setting Every Day Low Price Business Rules Inherit From Parent What Are Ending Numbers? Setting Ending Numbers October, 2006

7 1 What is Promotion Optimization? 1 What is Promotion Optimization? The Promotion Optimization process: s historical price data and measurements to generate recommendations for products, offers, forecast units, and prices for future promotion events based on defined financial goals Manages scenarios that perform what-if analysis of different products, forecast units, prices, and offer combinations Allows you to create, change, and delete promotion events, areas, and scenarios Provides forecasting and optimization of scenarios. 1.1 Creating Promotion Events In Promotion Optimization: A promotion event defines the duration and locations for a promotion. An area defines the products available for the scenario. A scenario defines the suggested products, offers, and prices for the promotion. You create a promotion event using a wizard from the Price Activity Calendar. After that, you define the areas using the Summary page. Once the event and areas are defined, you create and refine scenarios until you obtain a promotion event you want to implement. 1.2 Creating Scenarios The application allows you to create scenarios for your promotion in three different ways: r-selected products and offers based on your knowledge of your business, enter the products and offers for your planned promotion and use the application to forecast results. r-selected products and system-optimized offers enter the products you know you want to promote and use the application to suggest the best possible offers. System-optimized products and offers allow the application to select both the products and offers for the promotion based on the goals you select. 1.3 Constraining the Optimization Process You can constrain the application optimization process using the: Scenario creation wizard that allows you to set media type, strategy, and margin goals for recommended results Business rules that define which offer types can be used for various products along with parameters such as minimum and maximum prices, percentage off amounts, and so forth. If you are going to use the application s built-in optimization process, you must set the business rules before creating promotion events and scenarios. October,

8 2 Viewing the Price Activity Calendar 2 Viewing the Price Activity Calendar You can view a list of events, along with a calendar of dates. 1. From the navigation panel, choose Price Activity Calendar. 2. Choose one of the following options From the Status dropdown box: Open Shows events that have been started, but not yet approved. The application allows you to view and to change the areas and scenarios for the event. Approved Shows promotion events that have been approved. The application allows you to see only the Summary tab for approved events. You can reopen approved events, if the promotion event has not passed the start of the delivery interval. Delivered Shows promotion events that have been delivered to the stores but have not yet started. The application allows you to view all the information for the event, but you cannot make changes. Cancelled Shows promotion events that have been cancelled because they were not approved before the delivery interval. The application allows you to view all the information for the event, but you cannot make changes. Pending Shows promotion events that are between the start and end dates. The application allows you to view all the information for the event, but you cannot make changes. Closed Shows promotion events have passed the end date. The application allows you to view all the information for the event, but you cannot make changes. 3. From the Type dropdown box, choose Promotion. The Price Activity Calendar displays the events with the status specified. 4. To filter event status; choose Filter. The Activity Calendar Filter dialog box appears. 5. Select a search constraint from the dropdown list and type your search text. 6. In the Event Type Filter section, choose a Media Type and a Customer Type from the dropdown lists. The values in these files are customized for your business. 7. In the Date Filter section, click the down arrow to select a Date Filter Type from the dropdown list. 8. From Start Date and End Date, click the calendar icon and choose dates for the promotion event. 9. Click OK. If you click Clear, the application removes your selections for Search Text, Media Type and Customer Type. If you click Cancel, the application stops the filter process. 8 October, 2006

9 3 Creating Promotion Events 3 Promotion Events 3.1 Creating Promotion Events You can create promotion events by stepping through a wizard process. This wizard process creates the event that you can later add scenarios, products, and offers. 1. From the Price Activity Calendar, choose Create. The Price Activity Wizard appears. 2. Select Promotion and click Next. The Promotion Definition page appears. 3. Type a name in Price Activity Description. 4. From Start Date and End Date, choose the dates for the promotion event. 5. From the dropdown lists, choose Chain Customer Type Media Type The values in these fields are customized for your business. 6. Choose Next. The Location Selection page appears Selecting Locations You can select store locations to include in the promotion event. 1. Choose Next. When you select an upper level, the application selects all the stores below that level. When you deselect an upper level, the application deselects all the stores below that level. The Area Creation page appears. October,

10 3 Creating Promotion Events Creating Areas 1. Type a name for the Area Name. 2. Choose Add. The application adds the area to the Area List. 3. Repeat steps 1 through 2 until you have added all needed areas. 4. Choose Next. The Product Selection page appears. You must set up at least one area within the Price Activity Wizard, but you may create additional areas from the Summary tab Selecting Products 1. Highlight an area in the Area List. 2. Select groupings or categories at any product hierarchy level above the product for the area you selected. 3. Repeat steps 1 through 2 until you have assigned products to all areas. 4. Click Finish. Product selection is limited to the set of items defined for the area Finish A message appears about the successful creation of the event. The promotion event displays with an Open status on the Price Activity Calendar after the Start Date you entered. Choose Refresh to display the most recent information. 10 October, 2006

11 4 Using Areas 4 Using Areas In Promotion Optimization, the Summary tab page lists the areas created for a promotion event, along with general information and a list of stores. You can view, create, delete, or approve areas for a promotion event. You can access to the Area Detail page from the Summary tab page. 1. Highlight any promotion event in the Price Activity Calendar table. 2. Choose Detail. The Summary tab appears. Summary shows a list of all areas included in the promotion event Info shows basic information for the selected promotion event Locations shows a list of stores included in the promotion event Refresh updates the page Approve allows you to approve an area You must have an approved scenario for the area before this function is available. Create launches the Area Wizard that allows you to create new areas Detail shows the Area Detail page for a highlighted area. Delete allows you to delete a highlighted area. 4.1 Creating Areas 1. Choose Create. The Area Wizard appears. 2. Type a name for the area. 3. Select product hierarchy levels to assign to the area. 4. Choose Finish. The area appears on the Summary page for that promotion event. 4.2 Deleting Areas 1. Highlight an area and click Delete. A message appears asking you to confirm or cancel the deletion. October,

12 4 Using Areas 2. Click Yes. The application deletes the area and removes it from the list. 4.3 Approving/Unapproving Areas 1. Highlight an area on the Summary tab. 2. To: Approve the area, click Approve. Unapprove the area, click Re-open. You can only approve or re-open an area before the delivery interval. The application changes the status of the area. 12 October, 2006

13 5 Creating Scenarios Promotion Optimization Guide for SAP DM 5 Creating Scenarios The following sections detail methods for creating scenarios. 5.1 Area Detail The Area Detail page: Displays a list of scenarios created for a specified area in a promotion event, along with area allocation details Allows you to view, create, copy, or approve scenarios Provides access to the scenario detail page Viewing Area Detail Area Detail displays a list of all scenarios created for the area in the promotion event. 1. From the Summary tab, highlight any area. 2. Choose Detail. The Area Detail tab appears. Area Selection displays all the areas for the promotion event When you highlight an area, the application updates the Area Detail and Area Allocation Details sections to display specific information for that area. Area Allocation Details displays basic information for the selected promotion event Refresh updates the page Approve allows you to approve a scenario You must approve the area on the Summary page before the application allows the use of the scenario s recommended prices Copy allows you to copy a scenario that you may then modify Create displays a wizard for creating a new scenario Detail displays the Scenario Detail page for a highlighted scenario Delete allows you to delete a highlighted scenario October,

14 5 Creating Scenarios 5.2 r-selected Products and Offers 1. From the Area Detail page, choose Create. The Scenario Wizard appears. 2. Type a name for the scenario. A workflow appears on the left side of the wizard. The yellow box indicates where you are in the workflow. 3. Select r-selected products and offers, and choose Next. The Offer Selection page appears. 4. one of the following methods to choose an Offer Type: To associate all products in this scenario with a single offer type and you know what that type is, select Select one offer type to apply to all products in this scenario, choose Next, and then continue to step 5. To apply multiple types of offers to the products in this scenario, or defer selection, select Apply offer types later in the Scenario Details page, choose Next, and then continue to step Enter the offer details for the following offer types and click Finish when you are done: Buy X, Get Y 1. In the Offer Deal dropdown list, choose Buy X, Get Y. 2. Enter the Multiple and Percent Off, Amount Off, or Price. 3. Search to select the products for the deal. Product selection is limited to the set of items defined for the area. For additional information, see Searching for Products. You can also use the Copy and Move buttons to copy products from one list or move them to another. For example, you can copy the X product to the Y product so you can buy one, get one free. If you designate a product as Y, but later decide it would make a better X, you can use Move to move the product over in the list. Additionally, you can use the Remove or Remove All buttons while completing the list. Discount 1. From the Offer Deal dropdown list, choose Discount. 2. Enter the Multiple and Amount Off, Percent Off, or Price. 3. Search to select the products for the deal. Product selection is limited to the set of items defined for the area. For additional information, see Searching for Products. You can also use the Remove or Remove All buttons while completing the list. 14 October, 2006

15 Every Day Low Price 1. From the Type dropdown box, choose Everyday Low Price. 2. Enter the Multiple. You do not need to enter the price; it will not change. Search to select the products for the deal. Promotion Optimization Guide for SAP DM 5 Creating Scenarios Product selection is limited to the set of items defined for the area. For additional information, see Searching for Products. You can also use the Remove or Remove All buttons while completing the list. 5.3 r-selected Products and System- Optimized Offers 1. From the Area Detail page, choose Create. The Scenario Wizard appears. 2. Enter a name for the scenario. A workflow appears on the left side of the wizard. The yellow box indicates where you are in the workflow. 3. Select r-selected products and System-optimized offers, and choose Next. The Product Selection page appears Selecting the Products 1. Search to select the products for the deal. Product selection is limited to the set of items defined for the area. For additional information, see Searching for Products. 2. After you have selected all products, choose Next. The Strategy page appears Entering the Strategy 1. Enter the Maximum Margin % by typing the amount or using the up and down arrows to change the percent # value. The Maximum Margin % represents the amount of margin the system must use to meet the goals. 2. Highlight at least one of the goals in the Goals list. 3. Click on the right arrow to move you selection to Selected Goals. You may select more than one goal and rearrange the order to reflect your company priorities. You can also use the left arrow to remove a goal. October,

16 5 Creating Scenarios 4. In Selected Goals highlight a goal and click: Up to make it higher priority Down to make it lower priority 5. When you have completed the Selected Goals list, choose Next. The Filter page appears Entering the Filters 1. Under Recommend, select Price Family or Product. 2. Choose Finish. If you select Price Family, the application applies the same price to all products in the price family. Otherwise, if you select Product, products in a price family may have different prices. The application creates the scenario. 3. To see the scenario in the list, click Refresh. 5.4 System-optimized Products and Offers 1. From the Area Detail page, choose Create. The Scenario Wizard appears. 2. Enter a name for the scenario. A workflow appears on the left side of the wizard. The yellow box indicates where you are in the workflow. 3. Select System-optimized products and offers, and choose Next. The Strategy page appears Entering the Strategy 1. Enter the Maximum Margin % by typing the amount or using the up and down arrows to change the percent # value. The Maximum Margin % represents the amount of margin the system must use to meet the goals. 2. Highlight at least one of the goals in the Goals list. 3. Click on the right arrow to move you selection to Selected Goals. You may select more than one goal and rearrange the order to reflect your company priorities. You can also use the left arrow to remove a goal. 4. In Selected Goals highlight a goal and click: Up to make it higher priority Down to make it lower priority 5. When you have completed the Selected Goals list, choose Next. The Filter page appears. 16 October, 2006

17 5.4.2 Entering the Filters 1. Under Recommend, select Price Family or Product. Promotion Optimization Guide for SAP DM 5 Creating Scenarios 2. Choose Finish. If you select Price Family, the application applies the same price to all products in the price family. Otherwise, if you select Product, products in a price family may have different prices. The application creates the scenario. 3. To select the number of price families or products to which to restrict the optimization results, select Restrict to Top. 4. To select the number of days within which the products cannot be promoted,select Not Promoted Within. 5. Choose Finish. The application creates the scenario. 6. To see the scenario in the list, click Refresh. 5.5 Copying a Scenario You may reuse scenarios by copying a scenario and modifyin the scenario. 1. Choose the Area Detail tab. 2. Choose Copy. The Copy Scenario dialog appears. 3. Select the location from which to copy the scenario: Current area Scenario library 4. Highlight the scenario to copy, and enter a name. 5. Click OK. The application creates the new scenario with the information from the old scenario, including products, offers, and vendor incentives, but not date range. Only items that are approved for the area are copied into the newly created scenario. Any item not approved for the area is removed from the newly created scenario. 6. You may click on the scenario on the list and edit it as necessary. October,

18 6 Searching for Products 6 Searching for Products The search for products function allows: Searching by SKU or Product Number Performing a Product Search to find a product using the Search, Product Hierarchy, or Advanced Search functions. 6.1 Searching by SKU or Product Number 1. From the Search by dropdown box, choose SKU or Product Number. 2. In the Number field, enter the SKU or the product number. 3. Click Add. Either of the following messages may appear: o If the application does not find a matching product, a message appears. Click OK and repeat steps 1 through 3 with the correct number. Alternately, you can use the product search function. For additional information, see Performing a Product Search. o If a product is part of a price family, a message appears asking you whether to include all products in the price family. Click Yes or No, as appropriate, and continue to step Review the list of products. 5. You have the option to use Remove or Remove All buttons to edit the list of products. 6.2 Performing a Product Search Choose Product Search. The Product Selection Dialog appears. You can use the: Search tab Product Hierarchy tab Advanced Search tab Using the Search Tab 1. From the Search Type dropdown box, select the type of search. 2. From the Search Constraint dropdown box, select the type of constraint. 3. In the Search field, enter the text for the search, and choose Go. The matching products appear. 4. Select: Desired products from the list Automatically add Price Family products. 5. Click OK. The products you selected appear in the Product Selection page. 18 October, 2006

19 6 Searching for Products Product selection is limited to the set of items defined for the area Searching with the Product Hierarchy Tab 1. the minus and plus symbols to contract or expand the Product Hierarchy list. 2. Select: Desired products from the list Automatically add Price Family products. 3. Click OK. Product selection is limited to the set of items defined for the area. The products you selected appear in the Product Selection page Searching with the Advanced Search Tab 1. From the Search Type dropdown box, select the type of search you want for an advanced search. 2. From the Search Constraint dropdown box, select the type of constraint. 3. In the Search field, enter the text for the search and choose Add to List. Multiple search criteria can be added to the list and the application will return any products that meet all criteria. The search criteria you set appears in the list. 4. the Remove or Remove All buttons to edit the list. 5. Continue steps 1 through 4 until you have completed the desired search criteria. 6. Choose Preview. The list of matching products appears. 7. If the product or products you want are in the list, highlight them; otherwise, repeat steps 1 through 6 until you find the desired products. 8. Click OK. Product selection is limited to the set of items defined for the area. The products you selected appear in the Product Selection page. October,

20 7 Using Scenarios 7 Using Scenarios 7.1 Approving a Scenario Once you have a scenario you feel meets strategic goals, you must approve it so you can use the prices for a promotion. You can only approve one scenario for each area. 1. Choose the Area Detail tab. 2. Highlight the scenario to approve. 3. Choose Approve. The status changes to Approved. 4. To see the Totals, navigate to the Summary tab. To view a list of products within the area and the associated forecast information, you can expand the hierarchy by clicking the plus sign (+) next to the area name. 7.2 Unapproving a Scenario To edit an approved scenario, or to approve a different scenario, you may unapprove a scenario. The Start Date minus the user-defined pricefile lag interval for the scenario must be in the future. 1. Choose the Area Detail tab. 2. Highlight the scenario. 3. Click Un-Approve. The application sets the scenario s Status to Open. 7.3 Scenario Details In Promotion Optimization, the Scenario Details page displays a list of scenarios created within an area of a promotion event, along with totals for the forecast. It allows you to modify the products and offers of a scenario, forecast and optimize results, and add vendor incentives. It also allows you to select the Product Detail page Viewing Scenario Detail 1. From the Area Detail tab, highlight any scenario. 2. Click Detail. 20 October, 2006

21 7 Using Scenarios 3. The Scenario Detail tab appears. Scenario Details displays detailed information for the scenario highlighted in the Scenario Selection section. Scenario Selection displays a list of all scenarios contained within the area. You may select any other scenario, and the application updates the top of the page and the totals accordingly. Totals displays a combined view of forecasted values for all products contained within the scenario highlighted in the Scenario Selection section. Refresh updates information in the top frame for any changes made by other functions, such as forecasting. Summary displays the Scenario Summary in a page by itself. The Scenario Detail shows duplicate rows for Buy One, Get One products. An advantage of the Scenario Summary page is that Buy One, Get One offers display with the total of each product included in the scenario. Incentive allows to you work with vendor incentives. Add adds an offer to a scenario and displays the Edit Offer dialog Edit Offer edits the selected offer and displays the Edit Offer dialog. Delete deletes the highlighted offer. Forecast forecasts either the highlighted products or all products. Optimize optimizes either the highlighted products or all products. Detail displays the product detail tab for the highlighted offer s product. 7.4 Adding Products to a Scenario You can add additional products to any scenario which has not been approved. 1. In the Search by area at the top of the Scenario Detail page, select SKU or Product Number. 2. In the Number field, enter the SKU or the product number. 3. Click Add. If the application does not find a matching product, a message appears. 4. Click OK and repeat steps 1 through 3 with the correct number. 7.5 Removing Products from a Scenario 1. From the Scenario Detail tab, highlight a specific product or set of products. 2. Click Delete. The Delete Confirmation dialog appears. 3. Click Yes. 4. Optionally, choose Refresh to update the Totals frame. October,

22 7 Using Scenarios 7.6 Adding Products and Offers to a Scenario You can add additional offers to any scenario which has not been approved. 1. From the middle of the Scenario Detail page, click Add. The Edit Offer window appears. 2. From the dropdown list, select an Offer Deal. 3. Enter the offer details for the offer types: Buy X, Get Y a) In the Offer Deal dropdown box, choose Buy X, Get Y. b) Enter the Multiple and Percent Off. c) Search to select the products for the deal. For additional information, see Searching for Products. You can also use the Copy and Move buttons to copy products from one list or move them to another. For example, you can copy the X product to the Y product so you can buy one, get one free. If you designate a product as Y, but later decide it would make a better X, you can use Move to move the product over in the list. Additionally, you can use the Remove or Remove All buttons while completing the list. Discount a) From the Type dropdown list, choose Discount. b) Enter the Multiple and Amount Off. c) Search to select the products for the deal. For additional information, see Searching for Products. Optionally, you can use the Remove or Remove All buttons while completing the list. Every Day Low Price a) From the Type dropdown box, choose Everyday Low Price. b) Enter the Multiple. c) Search to select the products for the deal. For additional information, see Searching for Products. 22 October, 2006

23 7 Using Scenarios Optionally, you can use the Remove or Remove All buttons while completing the list. 7.7 Editing Offers within a Scenario 1. From the Scenario Detail tab, highlight a specific product or set of products. 2. Choose Edit Offer. You can mass edit a group of related products that are part of an existing deal group, provided the deal is a simple offer (discount amount, discount price, or discount percentage). You cannot mass edit a product group that includes any complex offer, for example, Buy X, Get Y. The Edit Offer window appears. By default, this window will be populated with the current Offer Deal information for the product when one item is selected. To remove offers, you must remove the product. 3. Enter the offer details for the offer types: Buy X, Get Y a) In the Type dropdown box, choose Buy X, Get Y. b) Enter the Multiple and Percent Off. c) Search to select the products for the deal. For additional information, see Searching for Products. Optionally, you can use the Copy and Move buttons to copy products from one list or move them to another. For example, you can copy the X product to the Y product so you can buy one, get one free. If you designate a product as Y, but later decide it would make a better X, you can use Move to move the product over in the list. Additionally, you can use the Remove or Remove All buttons while completing the list. Discount a) From the Type dropdown box, choose Discount. b) Enter the Multiple and Amount Off. c) Search to select the products for the deal. For additional information, see Searching for Products. Optionally, you can use the Remove or Remove All buttons while completing the list. Every Day Low Price a) From the Type dropdown box, choose Everyday Low Price. b) Enter the Multiple and Price. c) Search to select the products for the deal. October,

24 7 Using Scenarios For additional information, see Searching for Products. Optionally, you can use the Remove or Remove All buttons while completing the list. 7.8 Forecasting Products or Scenarios Once you create a scenario, or if you change products or offers, you can forecast results. 1. Choose the Scenario Detail page. 2. Highlight a product or products, then choose Forecast. The Forecast Products dialog appears. 3. Choose Selected Products Only or Entire Scenario. 4. Click OK. Do not edit on this page until the forecasts complete. The application highlights all products it is forecasting in dark gray; edits are not allowed. If you choose Refresh, the application updates the page to display any items that have completed forecasting. 7.9 Optimizing Within the Scenario You can reoptimize a promotion for a product or group of products within a given scenario. Reoptimizing ensures you have the most optimal offer for any given product or products. 1. Highlight a particular product or group of products. 2. Choose Optimize. A dialog appears prompting you to select the strategic goal for the selected product or products. 3. Enter the Maximum Margin %. You can enter the amount or you can use the up and down arrows to change the percent # value. 4. You must select at least one of the goals in the Goals list. Select your goals as follows: a) Highlight the desired goal or goals and click on the right arrow to move to Selected Goals. You can also use the left arrow to remove a goal. You may select more than one goal and rearrange the order to reflect your company s priorities. b) In Selected Goals, highlight a goal and click Up to make it higher priority. 24 October, 2006

25 7 Using Scenarios c) In Selected Goals, highlight a goal and click Down to make it lower priority. 5. When the Selected Goals list contains the desired elements, click Recommend. Do not edit this page until the forecasts complete. The application highlights all products it is forecasting in gray. If you click Refresh, the application updates the page to display any items that have completed forecasting Product Details In Promotion Optimization, this page displays in-depth information about the product you are using within a scenario. Viewing Product Detail 1. From the Scenario Detail tab, highlight any product. 2. Click Detail. 3. The Product Detail tab appears. Product Information summarizes information for the product. Vendor Incentives displays information about any vendor incentives currently assigned to this product. October,

26 8 Managing Business Rules 8 Managing Business Rules In Promotion Optimization, business rules define which offers apply to any given level of the product hierarchy while the application is optimizing your promotion. In addition, certain offers can be constrained with allowed values. For example, you can constrain discount percent to only allow suggested prices based on specified percentages. These business rules do not constrain offers you apply yourself when you are creating scenarios, but instead constrain only the application s optimization process. You many define promotion business rules at any level of the product hierarchy, starting at one level up from product. You can also define the business rules you want at a higher level and then push them to lower levels, using the Inherit From Parent feature. 8.1 Business Rules Business rules provide a method of constraining optimization to conform to established pricing policies, philosophy, and business practices Accessing Business Rules the tabs to constrain which offers can apply to specific product levels, as well as define ending numbers for recommended prices for the promotions. 1. From the navigation panel, choose Business Rules Library. 2. Choose the Promotion tab. Promotion s Business Rules tabs appear. Business Rules tab names and descriptions are: o Offers constrains the application by offer and by values for those offers in your selected level of the product hierarchy. The following sections offer detailed information. Any level can inherit the business rules set on the next higher level that has rules set. For more information, see Inherit From Parent. o Ending Numbers are described in What Are Ending Numbers? Any level can inherit the ending number rules set on the next higher level that has rules set. For more information, see Inherit From Parent. 8.2 Setting Discount Price Business Rules The Discount Price offer type allows you to create offers that have a set promotion price. For example, milk may have a regular price of $2.69, but you promote it for a discount price of $ From the navigation panel, choose Business Rules Library. 26 October, 2006

27 8 Managing Business Rules 2. Select Promotion. 3. From the Product list, select the desired product level. 4. From the Promotion Offers list, select Discount Price. 5. You can either set the rule or inherit it from the next higher level that has rules set. Choose On from the dropdown list to turn on the Discount Price status for the selected product. To inherit the rule from the next higher level, if available, select the Inherit From Parent checkbox at the bottom of the page. 6. In the Offer Details tab, set the following options: Min Price is the minimum price the application may use when making pricing recommendations. Max Price is the maximum price the application may use when making pricing recommendations. Ending Numbers Select this option to indicate the application must use defined ending number rules for any Discount Price recommendation. Deselect this option to indicate the application does not need to use ending number business rules for Discount Price recommendations 7. Choose Update. 8.3 Setting Discount Percent Business Rules The Discount Percent offer type allows you to create offers that have a percentage off their regular retail price. For example, milk may have a regular price of $2.69, but you promote it for 20% off. 1. From the navigation panel, choose Business Rules Library. 2. Select Promotion. 3. From the Product list, select the desired product level. 4. From the Promotion Offers list, select Discount Percent. 5. You can either set the rule or you can inherit it from the next higher level that has rules set. Choose On from the dropdown list to turn on the Discount Percent rule for the selected product. To inherit the rule from the next higher level, if available, select the Inherit From Parent checkbox at the bottom of the page. 6. You can add a percentage, delete a percentage, or generate a list of allowed percentages: Adding Percentages a) Choose Edit. The Edit Values window appears. b) To add a specific value, enter the value in the editable field. October,

28 8 Managing Business Rules c) Choose Add. The value appears in the list of valid percentages. Deleting Percentages a) Choose Edit. The Edit Values window appears. b) Highlight the value. c) Choose Delete. The application deletes the value and removes it from the list of valid percentage discounts. Generating Percentages a) Choose Edit. The Edit Values window appears. b) Choose Generate Values. The Generate Series window appears. c) Enter the Start Value, End Value, and Increment, and then click OK. A confirmation dialog appears, indicating this action overwrites existing values. This includes those values added by hand. d) Click Yes to confirm to the application to overwrite the previous list. The list displays the new list of values. e) Click OK. 7. Click Update. 8.4 Setting Discount Amount Business Rules The Discount Amount offer type allows you to create offers that have an amount off their regular retail price. For example, milk may have an everyday price of $2.69, but you promote it for $0.50 off. 1. From the navigation panel, choose Business Rules Library. 2. Select Promotion. 3. From the Product list, select the desired product level. 4. From the Promotion Offers list, select Discount Amount. 28 October, 2006

29 8 Managing Business Rules 5. You can either set the rule or inherit it from the next higher level that has rules set. Choose On from the dropdown list to turn on the Discount Amount rule for the selected product. To inherit the rule from the next higher level, select the Inherit From Parent checkbox at the bottom of the page. 6. You can add an amount, delete an amount, if available, or generate a list of allowed percentages: Adding an Amount a) Choose Edit. The Edit Values window appears. b) To add a specific value, enter the value in the editable field. c) Choose Add. The value appears in the list of valid amounts. Deleting an Amount a) Choose Edit. The Edit Values window appears. b) Highlight the value. c) Choose Delete. The application deletes the value and removes it form the list of valid percentage discounts. Generating a List of Amounts a) Choose Edit. The Edit Values window appears. b) Choose Generate Values. The Generate Series window appears. c) Enter the required data, and click OK. A confirmation dialog appears, indicating this action will overwrite existing values. This includes any values added by hand. d) Click Yes to overwrite the previous list. e) Click OK. 7. Choose Update. 8.5 Setting Buy X, Get Y Business Rules The Buy X, Get Y offer type allows you to create offers that have products that must be purchased together. The offer may include the same products (X equals Y) or different products (X does not equal Y). October,

30 8 Managing Business Rules You may want to create these types of promotions: Buy one shampoo at regular price, and get one free. Buy one shampoo for 20% off, and get conditioner free. Buy two packages of hotdogs, get buns at $.50 off. 1. From the navigation panel, choose Business Rules Library. 2. Select Promotion. 3. From the Product list, select the desired product level. 4. From the Promotion Offers list, select Buy X, Get Y. 5. You can either set the rule or inherit it from the next higher level that has rules set. Choose On from the dropdown list to turn on the Buy X, Get Y rule for the selected product level. To inherit the rule from the next higher level, if available, select the Inherit From Parent checkbox at the bottom of the page. 6. Choose Update. 8.6 Setting Every Day Low Price Business Rules The Every Day Low Price offer type allows you to promote a product at its regular price. This offer is considered a promotion because there is additional awareness being drawn to the product. For example, cookies are on an end-cap and are being promoted at their regular retail low price of $1.99. Because of the increased product awareness, customers may purchase more of these items. 1. From the navigation panel, choose Business Rules Library. 2. Select Promotion. 3. From the Product list, select the desired product level. 4. From the Promotion Offers list, select Everyday Low Price. 5. You can either set the rule or inherit it from the next higher level that has rules set. Choose On from the dropdown list to turn on the Buy X, Get Y rule for the selected product level. To inherit the rule from the next higher level, if available, select the Inherit From Parent checkbox at the bottom of the page. 6. Choose Update. 30 October, 2006

31 8 Managing Business Rules 8.7 Inherit From Parent The Business Rules Offers tab allows you to choose to Inherit From Parent at any level in the product hierarchy. This means that the application resets your chosen level to match the rules set at the next highest level that has rules. When you first start using Promotion Optimization, business rules are set only at the Enterprise level. You can go into the Business Rules Offers tab and set rules for any selected level of the product hierarchy. As you continue working, you or others may have changed rules set on various product levels. You may want to push the rules down from a higher level into the lower levels, overriding any of the previous definitions. To do so, set the rules at the higher level, then move down the tree from level to level, selecting the Inherit From Parent checkbox as desired. Choose Update on each level to save the change. When the Inherit From Parent checkbox is not available, either you are at the top level of the tree, or the current level has already inherited the values. When you change a level that has inherited its values, the application makes the Inherit From Parent checkbox available again. 8.8 What Are Ending Numbers? You can require recommended prices set by the application to end with selected numbers. For example, you can set prices to end only in $.x8, along with $.4x through $.8x. This will result in all the combinations from $.48 through $.88 being valid. If the application is not changing a price, the end numbers do not change. This may result in prices that end in numbers other than your selection for prices the application has not changed. 8.9 Setting Ending Numbers 1. Choose Business Rules from the navigation panel. 2. Select Promotion. 3. Choose the Ending Numbers tab. 4. In Product list, select the product level. 5. You can inherit the values from a higher level by selecting the Inherit From Parent checkbox at the bottom of the page or you can set the ending numbers: Inheriting from Parents a) Select the Inherit From Parent checkbox. b) Choose Update. Setting the Ending Numbers a) For each specified dollar amount, select the checkbox next to the desired values. b) Choose Update. If you change values on this page, then move from the field, the application asks you whether or not to update. If you wish to update, choose Update; otherwise, choose Do Not Update. October,