8/13/2019 What is Promotional Planning

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WHAT IS PROMOTIONAL PLANNING?Promotional Planning is a tool that may be used to achieve any of the objectives given below

increase the market share

prepone sales

liquidate excess inventory

increase market penetration

product awareness

HOW PROMOTIONAL PLANNING IS ADDRESSED IN APO?1. Create a baseline forecast viz without the effects of Promotional Planning.. Create Promotions in !P" where you specify the period.#. Promotion attributes are created for grouping viz dealer discounts$ buyback$ competitor %s

promotions etc.&. !ttach Cannibalization 'roups if applicable.(. )valuate the promotion.*. +ou have the option of releasing the Promotion to ,-P along with baseline forecast or

separately.. ,ystem corrects the history based on past promotions.

BUSINESS EXAMPLE OF PROMOTIONAL PLANNINGObjective /ncrease sale of *0( / !234-Prootio! Sc"ee5 ! moped free with every !234- tractor.S#$te Re%&iree!t$ 1. Create baseline forecast for *0( / !234- without Promotion.. Create Promotion for the future period.#. Choose the promotion attributes.&. !pply the impact of the Promotion on similar product through Cannibalization 'roup.(. )valuate the promotion in terms of 2evenue generated vis676vis the costs incurred.*. Past Promotions data8pattern can be used for future Promotions.. 9ake a decision.

WHAT ARE THE LIMITATIONS?

9he results depend entirely on the judgement of the Planner both in terms of increase in

,ales as well as impact on like products.

ata entry has to be done at Product variant level.

9he assumption is that the baseline forecast is very accurate.

PRERE'UISITES FOR IMPLEMENTING PROMOTIONAL PLANNING?

!vailability of following data

1. Period of Promotion.. Cost of Promotion.#. /mpact on Product and like products.&. iscounts offered8 ,elling price 8 schemes.

(. 2esults achieved.