Trade Promotion – Logic and Set up of Spends – The Building Blocks
About me - Worked in the Sales and Marketing sector for 9 years and then as a consultant and solution architect in SAP CRM for close to 9 years . Have varied experience in the Sales, Marketing modules, the pricing scenarios. Most of last year had been working on an implementation project in TPM right from solutioning to configurations of the various TPM functionalities like Promotions , Spends, Funds.
The below blog provides an insight into understanding the configuration and linkage of the Trade spends with Promotions and simplifies the concepts and guides the readers in the Spend set-up and logic
Trade Promotion Management as we all know is a powerful, integrated and robust functionality to aid various business processes. The Marketing Planning and execution becomes simpler due to the various features like forecasting volumes, arriving at the required rebates that can be furnished to Retailers for the eventual goal of rocketing turn- overs
In this document, we will be dealing with the setting-up of basic units of TPM – The Spends in a Promotion.
The Spends are the actual building blocks in a promotion which are where the promotion value is fed and which integrated with the funds as well. These provide the linkage to a promotion.
Now, let us see how a spend gets set-up –
We can look at setting up of three different types of Spends –
Fixed Spends – The Fixed Spend as the definition suggests is a fixed or lump sum amount that is entered in a promotion. This will be passed on to the Retailer independent of the volumes sold. They are pre-decided to be let on to the Retailer and can be accrued directly
Variable Spends – The Variable Spend unlike the fixed spend is not a fixed amount but is based on the volume that is sold to the retailer and will be calculated based on the volume. It can be either a percentage or a rate / unit. This will be accrued by the retailer in proportion to the volume that is shipped
Off Invoice Spends – These spends get directly discounted from the Retailer invoice in ECC. The calculation of the spend happens in ECC and we can then fetch it from ECC to CRM for the claim processing–
- Go to the Path Mentioned above and click on Assign Condition Generation Groups
- Select a standard condition generation group and create a copy of the same using the required nomenclature – In this Case copied 0002 and created a condition generation group – ZCON
- Now Select the condition generation group created and click on the Pricing Condition Type to map the spends against the condition types
- In Integrated systems where CRM is integrated with ECC the condition types mapped to the spends will be created and downloaded from ECC. In this case the condition types ZREB, ZVOL and ZOFF
- Select the condition group and assign a campaign condition type which is required for determination of the promotion in ECC. This promotion type in integrated system is also created and downloaded from ECC
- Now in your condition group maintain all the related condition tables for all the spends
- The condition tables also in integrated system are downloaded from ECC
- If you observe there are two columns Acc type and Product Level in the Screen shot. The significance of this is how you would want to define your planning dimensions in the Promotion. That is how the spend values must be saved and determined. Against the Account or account hierarchy, product or product category etc
- In this scenario, the planning dimensions used are Account Hierarchy and Product
Assignment of the Spends to the Promotion where we enter and put them to use