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Promotion Management for Retail at
Brookshire Grocery Company Cathy Cockrell, Terry Gilbert, and Ina Viljoen
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LEARNING POINTS
SAP PMR Overview
Brookshire Grocery Company business goals
Brookshire’s PMR implementation experience
Our Lessons Learned
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What is Promotion Management for Retail?
SAP Retail Promotions is an application that helps retailers identify the promotions that will be most profitable based ontrue shopper demand. SAP Retail Promotions provides support for planning promotions, forecasting their performance, andcreating a single platform that allows business users to collaborate quickly and effectively throughout the entire promotion
planning and execution lifecycle.
SAP Retail Promotions ObjectiveConnect promotion planning, creation, forecasting, and execution process to improve promotion effectiveness and profitability
Process GoalsBuild Area and Block Templates used to create the Event’s page layouts that can be viewed and printed Manage variations by product, locations, and dateForecast impact of promotional offers & deals
Key OutputEnd Result is approved promotional events and offers that are transferred to ECC for execution at point of sale
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Promotion AnalysisAnalysis Modeler
SAP Retail PromotionsPromotion Planning Overview
AAdvertising
Pricing AnalystsP
Promotion Planning
Export to POS
OfferModeling& Analysis;Vendor Funds
Forecast
Assign OfferTo Event
Create EventsAssign Templates
Event Schedule
OfferCreation
ContentSelection
• POS Outbound• AMS WESOUT
ProofCorrections
2500.-
NormPris
LIVA kombi-skænk
499.
2999.-
SPAR
Hylder,top ogfronterimassiveg.Med 2 trælåger,1 glaslågeog2 skuffermedmetaludtræk.B136x H140xD45 cm*
2500.-
NormPris
LIVA kombi-skænk
499.
2999.-
SPAR
Hylder,top ogfronterimassiveg.Med 2 trælåger,1 glaslågeog2 skuffermedmetaludtræk.B136x H140xD45 cm*
2500.-
NormPris
LIVA kombi-skænk
499.
2999.-
SPAR
Hylder,top ogfronterimassiveg.Med 2 trælåger,1 glaslågeog2skuffermedmetaludtræk.B136x H140xD45 cm*
25
00.-
NormPris
LIVA kombi-skænk
499.
2999.-
SPAR
Hylder,top ogfronterimassiveg.Med 2 trælåger,1 glaslågeog2skuffermedmetaludtræk.B136x H140xD45 cm*
Data Management
.
.
Manage Block, Area, & Content Templates; Product & LOC Groups
Solution Components
Ad SpecialistsA
Transfer
-Event Transferred toECC 5 weeks before AdBreak
-Offer Details sent toAdvertising
-Complex BBY Offerssent to AMS
Art icl e 1
Art icl e 2 Art icl e 3
ProductGroups
Store 1Store 2Store 3
SiteGroups
Store 1Store 2Store 3
SiteGroups
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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]
OfferFinancial metrics and contentfor a Product, a groups of Products, or acategory; presented to the consumer forpurchase within a specific Store or StoreGroup and for a particular date range
Location(Store or Web)
Location Hierarchy(Group of Stores)
Display Image 1
“Save” StoryDisplayPromo Price
ProductDescription 1
ProductHeadline
SAP Retail Promotion Glossary
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SAP Retail Promotion Goals/Benefits
Enable Collaboration between DepartmentsImprove planning and execution of Promotional Activities
Automation of Promotion CreationImproved Accuracy of Promotions – Verification & System ValidationsRe-use Previous Promotions / OffersProduct Group Library
Science-Based Forecast for PromotionsMore Reliable for Profit Management and ProcurementRun Scenarios to Maximize Sales and ProfitsIdentify Incremental vs. Cannibalized Sales in a PromotionAttach Vendor Funds to Offer
Promotion Process Taken On-lineImproved Visibility to CostMerchandising Layouts / Template ManagementEvent Preview and Print
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BGC Business Goals and Objectives
Enable Collaboration between Vendors, Category Managers, Marketing andAdvertising within the Retailer
Ensure information is consistent throughout the Planning Process between thesegroups
Improve Planning and Execution of Promotional Activities
Reduce the number of Tactical Tasks Reduce communications between Category Managers and Advertising with regardingto 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
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BGC Business Goals and Objectives continued…
Enable Use of Templates that reduces time to execute and errors incommunication Provide Templates for Pages and Displays which provide a vehicle tocommunicate Promotional activity between groups
Templates allow use and re-use of information by merchandising andadvertising
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 byall Groups
Providing a single source for association of Promotional Offers to Events
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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 topromote 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 performanceof the Event
Shows full financial performance at Space, Area (Page) and Event levels
Enable user provided planned quantities
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BGC Business Goals and Objectives continued…
Forecast of Products wi thin a Promotional Offer
Integrate with a science-based engine to issue Product Store forecasts basedon sales history and other influencing factors
Comprehensive Export of Promotional Information
Enable automated communications with Desktop Publishing programs
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BGC Summary of Business Benefits
Improved product ivity – supporting better collaborationamong vendors, marketing, Category Managers, andadvertising execution groups; streamlining promotions throughfewer cycles; and using resources more efficiently
Greater promotional effectiveness – enabling the creation ofrelevant, timely, and targeted advertising (by product, category,and zone) via automated ad-versioning functionality
More accurate product and store level forecasts – helpingto understand the financial performance of each promotionalevent before making final decisions
Lower promotional costs – reducing the time required toproduce advertisements as well as the number of proofsneeded for printing and reviewing
l k h
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SAP Retail Promotions at Brookshire’s“High Level” Event/Offer Process Flow
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Brookshire’s Detailed Event/Offer Process Flow
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14
Brookshire’s Original Project Scope and Details
End Users:Category Manager; Category Manager AssistantsAD Specialists; AdvertisingCM Analytics; Pricing AnalyticsMerchandising; ICAs
Project Note: Ramp Up CustomerOriginal Estimated Timeline: 24 WeeksBGC Project Team: 9 Full-Time Resources
SAP Project Team: 2 Full-Time Resources
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Overview of the Ramp-UpCommunication Structure
SAP Support
Development
BGC PMR Project
BGC Project Team
SAP Project Team
Solution Back Office
Back OfficeTeam
RU Owner
Ramp–Up Coach
OSS Customer Messages
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BGC SAP Promotions Extended ProjectTimeline
Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | MayS
07/30 – 08/27
Complete Blueprint
FDD’s
FRICE
Blueprint GateReview and Sign Off
08/27 – 11/24
(Phase I)
ECC BusinessFunctions/Web
Services
New PromoTypes/BB’s
UAT/Training
11/12 – 04/22
(Phase II)
PromotionsExecution
Promotions enteredinto PMR
AMS Interface
11/12 – 04/03
(Phase III)
Forecasting
Historical Data InitialLoads
Begin Daily SalesLoads
08/27 – 04/03
(Ongoing throughPhases)
Technical Specs
Development
Unit Testing
CompleteBlueprint
Go Live Phase I – ECCBusiness Functions
Technical Go Live Phase II – PromotionExecution
Technical Development and Unit Testing Complete for all Phases
Technical Go Live Phase III - Forecasting
Business Go Live Phase II – PromotionExecution
Business Go LivePhase III -
Forecasting
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17
BGC PMR Extended Project Scope
PMR and ECC are integratedAutomatic flow of allComplex Bonus Buys toAMS/LogiX via NCR upgrade
Offer numbergenerated in PMR flowsthrough entire systemRequires NCRmodificationsNo changes to RetailPOS
Single point of Ad Promotionsentry (excluding TPR’s)
Analytics will be available duringAd Generation Meeting
Forecast includes twoyears of historical salesand offer historyForecast vs ActualsReporting
Required modifications tolink sales to all PMR offers
SAP R t il P ti I t ti t
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SAP Retail Promotions Integration atBrookshire Grocery Company (BGC)
SAP ECC SAP RetailPromotions
SAP BI
DTP
Promotion
MasterData/
InventoryOutbound
PromotionPlanning
DMF
PromotionEffectiveness
Analytics
Sales History
POS
Daily Sales Load
Released Event Plan
POS Outbound – NonAMS Offers
Master Data, ECCRetail Event
POS Inbound Processing
BW Extraction (ZSEC)
BW Extraction
1
2
5
3
7 8
9
BGC Export
6
AMS4 POSDM
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SAP Retail PromotionsChange and Training Topics
Advertising
• Template Creation• Creation of Event• Assign Templates to EventAd 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 RulesPricing Analysts• Attaching Vendor Funds to Offers• Creating VF in SAP Retail Promotions• Forecast Analysis
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Brookshire’s Expected ROI
Increase in Warehouse Service level for Ad Articles
Substitute SalesIncreased Scan Gross from Increased Service Level
Labor Savings
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LESSONS LEARNED
Lessons LearnedAssign a dedicated ECC Pricing & Promotions resourcePlan go-live approach early in the projectDocument & finalize process flows early in the projectEnsure all parties are in agreement on scope and what itmeans in terms of processes, job functions and expectedresultsEnsure gaps are clearly defined and accommodated for, insome wayIdentify RICEF objects early – during project preparation ifpossible
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KEY LEARNINGS
PMR is the system of record for offers – feeds into ECCMultiple areas & processes are touched
PMR offers a one-stop-shop for promotions & offersfeeding into ECC, DTP, Ad creation and execution at the
POS. Resultant data allows for forecasting and analyticsSales data & promotional data is matched forforecasting
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