Promotion Management for Retail at Brookshire Grocery Co

8/18/2019 Promotion Management for Retail at Brookshire Grocery Co

1/24

Promotion Management for Retail at

Brookshire Grocery Company Cathy Cockrell, Terry Gilbert, and Ina Viljoen


2/24

LEARNING POINTS

SAP PMR Overview

Brookshire Grocery Company business goals

Brookshire’s PMR implementation experience

Our Lessons Learned


3/24

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


4/24

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


5/24

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


6/24

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


7/24

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


8/24

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


9/24


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


10/24


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


11/24

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


12/24

SAP Retail Promotions at Brookshire’s“High Level” Event/Offer Process Flow


13/24

Brookshire’s Detailed Event/Offer Process Flow


14/24

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


15/24

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


16/24

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


17/24

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


18/24

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


19/24

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


20/24

Brookshire’s Expected ROI

Increase in Warehouse Service level for Ad Articles

Substitute SalesIncreased Scan Gross from Increased Service Level

Labor Savings


21/24

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


22/24

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


23/24


24/24

THANK YOU FOR PARTICIPATING

Please provide feedback on this session by completing a

short survey via the event mobile application.

SESSION CODE: 3203

For ongoing education on this area of focus,visit www.ASUG.com

Documents

Promotion Management for Retail at Brookshire Grocery Co