Which to Choose SAP Trade Promotion Management (TPM) vs SAP Promotion Management for Retail (PMR) ?

[anirbanroy_in]

Hello Experts,

In context of Retail Process for B2C business (small /large customer). In S/4 Hana Retail there is standard functionality of Promotion Management & Execution. However it lacks the capability of advanced promotion planning and optimization.

SAP has 2 products which augments promotion capability : 1: SAP PMR and SAP TPM (with CRM)

SAP PMR - SAP product for Promotions and add-on to retail, SAP Promotions management in Retail (SAP PMR) with functions of SAP CAR DDF , gives the users a capability of Promotion Planning (Offer/Events), forecasting , what-in analysis and performance.

SAP TPM = Also SAP Trade Promotion Management is based on CRM and Support customer planning and optimization by combining volume, margin, assortment, promotion, and financial planning. This can also leverage integration with SAP CAR DDF for purpose of forecasting.

My Questions are :

a ) Which is the right product for purpose for promotion in context of B2C business for Retailer (with clients as individuals and also small/large companies?

c) Is TPM more relevant for B2B business model , i.e Distributors ?

b) If both can be used for a B2C model , but the business reasons are different then which reason drives adopting TPM and which drives adopting PMR?

Thanks in Advance.

Regards,

Anirban Roy

[b_sholes]

Hi Anirban,

Thanks for your question!.

The Term “Promotion” is used with a very wide definition based on the market where the Promotions is being provided.

PMR (SAP Promotions Management) is primary used to create “Promotional Offers” by the Retailer or CPG company that are intended to be presented to an end consumer. So Business to Consumer (B2C) transaction. So a major National Grocery Chain would create a Promotional Offer “Buy One 16oz. Crest toothpaste at Regular Price and Get 1 For Free”.

TPS, “Trade Promotions Management” is primary used for a Manufacturer like Proctor and Gamble to motivate the major National Grocery Chain to buy their Products and sell them in their Store. The traditional way to do this is to provide a discounted price on each case of Creat Toothpaste for example. This is a called a “Purchase based” discount. Sometimes it is tied to a volume purchase, like by 1000 case of Crest Toothpaste and we will provide a 10% discount on each case.

So this is a Business to Business (B2B) Transaction.

Over the years many retailers have mixed this business model and try to be both a Retailer with Corporate Stores as a well as creating Owner Operator Franchise Stores. In this model, the major National Grocery Chain will sell cases of Crest, to their smaller Franchise Stores. In this case you m,ay see a Retailer use both PMR and TPS.

This is a brief answer, but I'd be happy to discuss this in detail with you.

Thanks,

Bruce

Bruce Sholes

Global Solutions Director, Customer-Centric Merchandising & Marketing

Solution Owner - SAP Promotion Management (PMR)

Solution Owner - Fiori Offer Module in CAR

SAP Retail Industry Business Solutions

M +1 256 226 1275

www.sap.com

[anirbanroy_in]

Thanks Bruce.

Appreciate your response on this topic.

As I understand from your response, in case a products company does manufacturing and does B2B selling and also wants to go B2C (direct to consumer using own store or web) then both sap products (PMR and TPS) are relevant in their own right and cannot be replaced by one or the other.

PMR -> B2C (low volume, end consumer),

TPS --> B2B (high volume, to Retail Businesses, sales volume based Rebates agreements may apply)

Regards,

Anirban Roy

[amit123]

Hi Bruce .,

TPM Is comparable with ECC or only with S/4Hana.Do we have any deck or video to demonstrate the same..

Thanks for your input in Advance.

Regards

Amit Dogra

[Kishore_Nagisetty_SAP]

c) Is TPM more relevant for B2B business model , i.e Distributors ?

In B2B models, especially those involving distributors, manufacturers often rely on trade promotions to:

1. Incentivize distributors to push their products.

2. Increase product visibility and shelf space.

3. Drive sales volume through distributors.

4. Build strong relationships with channel partners.

Likely, TPM helps businesses plan, execute, and monitor these trade promotions effectively, ensuring that both the manufacturer and the distributor achieve their goals.

THANK YOU!

#TPM #SAP #BW 

[former_member810969]

Hi.

Is it possible to Trade Promotion Management be integrated with GRC?. I have been researching but I have not been able to find out if this is possible. Could you clarify if it is possible to do this integration?

Thanks