Promotion Management for Retail at Brookshire Grocery Company

Cathy Cockrell, Terry Gilbert, and Ina Viljoen

LEARNING POINTS

SAP PMR Overview 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

Promotion Analysis Analysis Modeler

SAP Retail Promotions Promotion Planning Overview

A Advertising

Pricing Analysts P

Promotion Planning

Export to POS

Offer Modeling & Analysis; Vendor Funds

Forecast

Assign Offer To Event

Create Events Assign Templates

Event Schedule

Offer Creation

Content Selection

• POS Outbound • AMS WESOUT

Proof Corrections

2500.-

Norm Pris

LIVA kombi-skænk499.

2999.-

SPAR

Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*

2500.-

Norm Pris

LIVA kombi-skænk499.

2999.-

SPAR

Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*

2500.-

Norm Pris

LIVA kombi-skænk499.

2999.-

SPAR

Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*

2500.-

Norm Pris

LIVA kombi-skænk499.

2999.-

SPAR

Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*

Data Management

<Display Price>

<Text>

<Size>

<Product Group Head>

<Product Group Description>

<Unit>.

<Reg Price>

<Primary Display Image>

<Display Price>

<Text>

<Size>

<Product Group Head>

<Product Group Description>

<Unit>.

<Reg Price>

<Primary Display Image>

Manage Block, Area, & Content Templates; Product & LOC Groups

Solution Components

Ad Specialists A

Transfer

-Event Transferred to ECC 5 weeks before Ad Break

-Offer Details sent to Advertising

-Complex BBY Offers sent to AMS

Article 1Article 2Article 3

Product Groups

Store 1Store 2Store 3

Site GroupsStore 1Store 2Store 3

Site Groups

Block Elements

Event (Collection of Areas) [Could be a Printed Weekly Ad, Mailer, Flyer, In-Store Displays, etc.]

Campaign (Collection of Events)

Area (Collection of Offers) [Could be a Printed Weekly Ad Page, Mailer, Flyer]

Offer 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

Location (Store or Web)

Location Hierarchy (Group of Stores)

Display Image 1

“Save” Story Display Promo Price

Product Description 1

Product Headline

SAP Retail Promotion Glossary

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 that reduces time to execute and errors 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 creation and communication 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 Vendor Funds in Offer to ensure proper margin calculations

Enable the Use 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, Area (Page) and Event levels

Enable user provided planned quantities

BGC Business Goals and Objectives continued …

Forecast of Products within a Promotional Offer

Integrate with a science-based engine to issue Product Store forecasts based on sales history and other influencing factors

Comprehensive Export of Promotional Information

Enable automated communications with Desktop Publishing programs

BGC Summary of Business Benefits

Improved productivity – supporting better collaboration among vendors, marketing, Category Managers, and advertising execution groups; streamlining promotions through fewer cycles; and using resources more efficiently

Greater promotional effectiveness – enabling the creation of relevant, timely, and targeted advertising (by product, category, and zone) via automated ad-versioning functionality

More accurate product and store 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

14

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

Overview of the Ramp-Up Communication Structure

SAP Support

Development

BGC PMR Project

BGC Project Team

SAP Project Team

Solution Back Office

Back Office Team

RU Owner

Ramp–Up Coach

OSS Customer Messages

BGC SAP Promotions Extended Project Timeline

Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May S

07/30 – 08/27

Complete Blueprint

FDD’s

FRICE

Blueprint Gate Review and Sign Off

08/27 – 11/24

(Phase I)

ECC Business Functions/Web

Services

New Promo Types/BB’s

UAT/Training

11/12 – 04/22

(Phase II)

Promotions Execution

Promotions entered into PMR

AMS Interface

11/12 – 04/03

(Phase III)

Forecasting

Historical Data Initial Loads

Begin Daily Sales Loads

08/27 – 04/03

(Ongoing through Phases)

Technical Specs

Development

Unit Testing

Complete Blueprint

Go Live Phase I – ECC Business Functions

Technical Go Live Phase II – Promotion Execution

Technical Development and Unit Testing Complete for all Phases

Technical Go Live Phase III - Forecasting

Business Go Live Phase II – Promotion Execution

Business Go Live Phase III -

Forecasting

17

BGC PMR Extended Project Scope

PMR and ECC are integrated Automatic flow of all

Complex Bonus Buys to AMS/LogiX via NCR upgrade

Offer number generated in PMR flows through entire system

Requires NCR modifications

No changes to Retail POS

Single point of Ad Promotions entry (excluding TPR’s)

Analytics will be available during Ad Generation Meeting

Forecast includes two years of historical sales and offer history

Forecast vs Actuals Reporting

Required modifications to link sales to all PMR offers

SAP Retail Promotions Integration at Brookshire Grocery Company (BGC)

SAP ECC SAP Retail Promotions

SAP BI

DTP

Promotion

Master Data/

Inventory Outbound

Promotion Planning

DMF

Promotion Effectiveness

Analytics

Sales History

POS

Daily Sales Load

Released Event Plan

POS Outbound – Non AMS Offers

Master Data, ECC Retail Event

POS Inbound Processing

BW Extraction (ZSEC)

BW Extraction

1

2

5

3

7 8

9

BGC Export

6

AMS 4 POSDM

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

THANK YOU FOR PARTICIPATING

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SESSION CODE: 3203

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